Based on the following information, compute cash flows from investing activities under GAAP.

Cash collections from customers $800
Purchase of used equipment 200
Depreciation expense 200
Sale of investments 450
Dividends received 100
Interest received 200

Respuesta :

Based on the principles of GAAP regarding what constitutes 'investing activities,' the cash flows from investing activities are $250.

Investing activities are:

  • Sale of investments
  • Purchase of used equipment

The cashflows from investing is:

= Sale of investments - Purchase of used equipment

= 450 - 200

= $250

In conclusion, the cashflows from investment are $250.

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