RAIN OR SHINE- Part 12 of 17

If there is a cash inflow, fill with a positive number. For example, an inflow of 100 would be 100. If there is a cash outflow, fill with the number with a negative sign. For example, an outflow of 100 would be -100. If no adjustment is needed for the particular item, fill with zero.

Do not use commas, symbols like $ or %, or text such as million, in your answer

What is the Cash Flow from Investing Activities?

Question

RAIN OR SHINE- Part 12 of 17

If there is a cash inflow, fill with a positive number. For example, an inflow of 100 would be 100. If there is a cash outflow, fill with the number with a negative sign. For example, an outflow of 100 would be -100.  If no adjustment is needed for the particular item, fill with zero.

Do not use commas, symbols like $ or %, or text such as million, in your answer

What is the Cash Flow from Investing Activities?

BlackTom AI · Accepted Answer

To determine Cash Flow from Investing Activities, we follow the given sign convention: inflows are positive numbers, outflows are negative numbers, and if an item requires no adjustment, we use zero. The question asks for the net Cash Flow from Investing Activities, which aggregates the investing-related cash flows (such as purchases or sales of long-term assets, investments, etc.).

Since the provided answer is -123000, this implies a net outflow of 123000 in investing activities. In other words, the total cash outflows from investing activities exceed any inflows by 123000. In the context of their sign convention, a negative net amount reflects spending or investments rather than proceeds from sales or other inflows.

Understanding why this might occur: investing activities typically include cash paid for purchases of property, plant, and equipment, cash paid for acquisitions of other investments, and cash received from the sale of such assets. If the cash paid out (outflows) outweighs the cash received (inflows) across all investing activities, the net result will be negative, which matches the given value of -123000.

Now, evaluating the idea of a negative result specifically: a negative net investing cash flow is common when a company is investing in growth (buying assets or acquisitions) rather than disposing of assets or receiving large inflows from investments. The numeric format shown (no commas, no symbols like $) is consistent with the instruction, and the minus sign correctly conveys an outflow in this convention.

If there were multiple items to consider, you would add all inflows as positive numbers and all outflows as negative numbers, then sum them to obtain the net cash flow from investing activities. The final value would be the sum of those signed amounts, and a negative sum indicates a net outflow.

In this case, the single reported net value is -123000, signaling a net cash outflow of 123000 from investing activities.

COMM_V 293 101 102 103 2025W1 2025 W1 COMM 293 FINAL Exam- Dec. 17 8:30 AM - 11:00 AM PST - Requires Respondus LockDown Browser

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