Calculate Cash Inflow (Outflow) from Investing Activities Given the Following

question 109

Multiple Choice

Calculate cash inflow (outflow) from investing activities given the following information: acquisition of business operations $925; disposal of property $605; disposal of intangible asset $175; interest received $80; proceeds of share issue $1,400; repayment of loan $195; dividends paid $200.

• A)Outflow of $180
• B)Outflow of $65
• C)Inflow of $1,395
• D)Inflow of $220

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Definitions:

Motor Vehicle

A self-propelled vehicle used for transportation of people or goods on the ground, such as cars, trucks, buses, and motorcycles.

Spare Parts Store

A business or location that specializes in selling replacement parts and components for machinery, vehicles, or other equipment.

Underapplied Overhead

Refers to the situation when the actual factory overhead costs are more than the overhead costs applied to a product based on the predetermined rate.

Overapplied Overhead

A situation where the estimated manufacturing overhead cost is more than the actual overhead incurred during a period.