Question

Using the following information, compute Net Cash Flow from Investing Activities. Note that some of the numbers in this problem are the same as those in the previous problem. Some, however, are different. You must answer this problem separately.

Balance Sheets for the Years Ending Dec. 31, 2011 and 2012

2011 2012 Cash             300            400 Accounts receivable         1,000        1,400 Inventories         3,200        3,000 Current assets         4,500        4,800 Net fixed assets         3,800        4,300 Total assets         8,300        9,100     Notes payable             400            300 Accounts payable             700            500 Accruals               50              80 Current portion of long-term debt               70              80 Current liabilities         1,220            960 Long-term debt         4,300        4,900 Common stock ($.20 par)         1,200        1,300 Additional paid-in capital             680            740 Retained earnings             900        1,200 Total liabilities and equity         8,300        9,100

Net income (as reported on the 2012 Income statement) = 590

Depreciation (as reported on the 2012 Income statement) = 111

Net Cash Flow from Investing Activities = __________

Answer 1

NET CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Net Fixed Assets 500 Add- Depreciation 111	(611)
Net cash flow from Investing Activities	(611)