Sale of short-term stock investments $ 8,500 Cash collections from customers 21,300
Purchase of used equipment 6,600 Depreciation expense 2,700

Required:
Compute cash flows from investing activities using the above company information. (Amounts to be deducted should be indicated by a minus sign.)

Cash flows from investing activities is $1,900

Explanation:

Cash flow from Investing Activities involves movements in the purchase and / or sell of capital expenditures.

Prepare the Cash flow from Investing Activities Section as follows :

Cash flow from Investing Activities

Proceeds from Sale of short-term stock investments  $ 8,500

Purchase of Equipment                                                  -$6,600

Net Cash flow from Investing Activities                          $1,900

Conclusion :

Cash flows from investing activities is $1,900

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

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