Flow Company Has Provided the Following Information for the Year

question 2

Multiple Choice

Flow Company has provided the following information for the year ended December 31,2010:
Cash paid for interest,$20,000;
Cash paid for dividends,$6,000;
Cash dividends received,$4,000;
Cash proceeds from bank loan,$29,000;
Cash purchase of treasury stock,$11,000;
Cash paid for equipment purchase,$27,000;
Cash received from common stock sale,$37,000;
Cash received from sale of land with a $32,000 book value,$25,000;
Acquisition of land costing $51,000 in exchange for preferred stock issuance.
Paid a $100,000 note payable by exchanging used machinery with a $77,000 book value.
How much was Flow's net cash flow from investing activities?

• A)A net outflow of $2,000.
• B)A net inflow of $2,000.
• C)A net outflow of $53,000
• D)A net inflow of $49,000

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Definitions:

Catatonic

A psychomotor disturbance characterized by abnormal movement patterns, including rigidity, immobility, or excessive, purposeless movement.

Undifferentiated

Lacking distinctive features or not specialized in function.

Paranoid

A mental state characterized by irrational distrust or suspicion of others, often without sufficient basis.

Excessive Amounts

Quantities that surpass what is normal, necessary, or reasonable.