Calculate Net Cash Flow from Investing Activities

Calculating Net Cash Flow from Investing Activities

Net cash flow from investing activities: -$5.3 million

The net cash flow from investing activities can be determined by analyzing the various transactions related to investments made by the Milliken Company. 1. Purchase of stock in another company: $2.2 million 2. Repurchase of treasury shares: $1.0 million 3. Purchase of short-term investments: $0.5 million 4. Sale of used equipment: $0.8 million 5. Purchase of new equipment: $3.4 million To calculate the net cash flow from investing activities, we need to consider the cash inflows and outflows from these transactions. Net cash flow from investing activities = Total cash outflows - Total cash inflows Total cash outflows: - Purchase of stock: $2.2 million - Purchase of short-term investments: $0.5 million - Purchase of new equipment: $3.4 million Total cash outflows = $2.2 million + $0.5 million + $3.4 million = $6.1 million Total cash inflows: - Sale of used equipment: $0.8 million Total cash inflows = $0.8 million Net cash flow from investing activities = $6.1 million - $0.8 million = $5.3 million net cash outflow Therefore, the net cash flow from investing activities for the Milliken Company is $5.3 million net cash outflow.
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