Question

Canadian Beer reported equipment sold for $260 million cash and new equipment purchased $1,534 million cash....

Canadian Beer reported equipment sold for $260 million cash and new equipment purchased $1,534 million cash. The equipment sold had a net book value of $188 million. Cash flow from investing activities would show:

An inflow of $260 million and outflow of $188 million.

A net outflow of $1,346 million.

Cash paid for equipment of $1,274 million.

An inflow of $260 million and outflow of $1,534 million.

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Answer #1
Cash flow from investing activities
Sale of equipment 260
Purchase of equipment -1534
Net cash used in investing activities -1274

So answer is d) An inflow of $260 million and outflow of $1,534 million.

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