Nathan Company paid $2

Finance Sep 05, 2020

Nathan Company paid $2.2 million to purchase stock in another company, $1.0 million to repurchase its own common shares on the market, $0.5 million to buy investments, sold used equipment for $0.8 million (when its book value was $0.6 million), and purchased new equipment for $3.4 million. What was the net cash flow for investing activities?

Expert Solution

Computation of the net cash flow from investing activities:-

Net cash used in investing activities = Purchase of stock in another company + short term investment - Equipment sold + Purchase of new equipment

= $2.2 + $0.5 - $0.8 + $3.4

= $5.3 million

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