Keller Inc What Was Keller's Cash Flow from Investing Activities for the

question 13

Multiple Choice

Keller Inc. had the following activities during the year: $$\begin{array} { | l | r | } \hline \text { Proceeds from the sale of land } & \$ 346,000 \\\hline \text { Gain on sale of land } & \$ 46,000 \\\hline \text { Proceeds from the issue of common shares } & \$ 800,000 \\\hline \text { Purchase of equipment } & \$ 450,000 \\\hline\end{array}$$ What was Keller's cash flow from investing activities for the year?

• A) $300,000 Cash outflow from investing activities.
• B) $796,000 Cash inflow from investing activities.
• C) $150,000 Cash inflow from investing activities.
• D) $104,000 Cash outflow from investing activities

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Definitions:

Rate of Return

A measure of the profitability and efficiency of an investment, expressed as a percentage of the original investment.

Initial Investment

The funds allocated to start a business or a project, representing the beginning financial input.

Net Present Value

The calculation of the present value of the sum of the present values of all cash inflows and outflows expected from an investment, using a specific discount rate to value future cash flows.

Cost Savings

Reductions in expenses that contribute to increased profit margins.