Melmore Ltd Had the Following Activity During 20X7 What Is the Cash Flow from Investing Activities?
A) $16,000

question 7

Multiple Choice

Melmore Ltd had the following activity during 20X7: $$\begin{array} { | l | r | } \hline \text { Proceeds from sale of long-term investments } & \$ 156,000 \\\hline \text { Gain on the sale of long-term investments } & \$ 16,000 \\\hline \text { Loss on the disposal of equipment (\$0 proceeds from disposal) } & \$ 17,000 \\\hline \text { Proceeds from sale of preferred shares } & \$ 182,000 \\\hline \text { Repayment of long-term debt } & \$ 30,000 \\\hline\end{array}$$ What is the cash flow from investing activities?

• A) $16,000
• B) $156,000
• C) $173,000
• D) $189,000

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Definitions:

Joint Cost

The costs incurred in producing products up to a split-off point in a process that yields multiple products, typically allocated among the products based on some reasonable method.

Split-off

A point in the manufacturing process where multiple products are generated from a common input.

Opportunity Cost

The potential benefit lost when choosing one alternative over another.

Excess Capacity

The amount by which current production capabilities exceed the current demand for a company's products or services.