Investing Cash Flow

B

Items a and d are the investing cash flows. Note that item b is a non-cash event.

To calculate the investing cash flow, we need to identify the relevant cash flows related to investments made by the enterprise during the given period. Let's analyze each item and determine its impact on the investing cash flow.

a. Sale of equipment: The sale of equipment represents a cash inflow from investing activities. It indicates that the enterprise sold equipment for $32,000, which increases the cash balance. So, this adds $32,000 to the investing cash flow.

b. Loss on equipment sale: The loss on equipment sale represents a non-cash expense and does not impact the investing cash flow. It is only relevant for calculating net income.

c. Dividends paid: Dividends paid to shareholders are classified as cash outflows from financing activities, not investing activities. Therefore, this item does not affect the investing cash flow.

d. Purchase of an office suite: The purchase of an office suite represents a cash outflow for an investment in a new asset. It reduces the cash balance and is considered an investing cash flow. Thus, this subtracts $104,000 from the investing cash flow.

e. Common stock repurchase: Common stock repurchases are also considered financing activities rather than investing activities. Thus, this item does not affect the investing cash flow.

f. Dividends received from investments: Dividends received from investments indicate a cash inflow from investing activities. It suggests that the enterprise received $8,500 in dividends from its investments. This adds $8,500 to the investing cash flow.

g. Interest received on Treasury bonds: Interest received on Treasury bonds represents a cash inflow from investing activities. Since the enterprise received $1,200 in interest, this adds $1,200 to the investing cash flow.

h. Supplier accounts paid: Supplier accounts paid represents a cash outflow related to the operations of the business, not an investing activity. Therefore, this item does not impact the investing cash flow.

i. Cash collection from customers: Cash collection from customers is related to the core operating activities of the business and is not considered an investing activity. Hence, this item does not affect the investing cash flow.

j. Ending cash balance: The ending cash balance represents the overall cash balance at the end of the period and is not directly relevant to the investing cash flow calculation.

Now, let's sum up the relevant cash flows to calculate the investing cash flow:

Investing cash flow = Sale of equipment + Purchase of an office suite + Dividends received from investments + Interest received on Treasury bonds Investing cash flow = $32,000 - $104,000 + $8,500 + $1,200 Investing cash flow = -$72,300

Therefore, the investing cash flow for the given financial data is -$72,300.

Among the provided answer choices, the correct option is B. -$72,000.