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Carter Containers sold marketable securities, land, and common stock for $36.0 million, $12.0
million, and $40.0 million, respectively. Carter also purchased treasury stock, equipment, and a
patent for $24.0 million, $22.0 million, and $8.2 million, respectively. What amount should
Carter report as net cash from investing activities?
Solution
Cash Flow Statement:
Note: Sale of Common Stock and purchase of treasury Stock is not investing activities.
Amount(Million $)
Cash From Investing Activities:
Cash receipt from Sale of Marketable Securities 36
Cash receipt from Sale of Land 12
Cash Paid for Purchase of Equipment (22)
Cash Paid for Purchase of Patent (8.2)
Net Cash Flow from Investing Activities 17.8

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