Two years ago, your company bought $45,000 in bonds from another company.

This month, it sold half of those bonds for $21,540 and purchased the common stock of another company for $1,450.

On the statement of cash flows for this accounting period, your company would report a net cash:

a) inflow of $21,540 from investing activities.

b) inflow of $20,090 from investing activities.

c) outflow of $20,090 from investing activities.

d) outflow of $21,540 from investing activities.

b) inflow of $20,090 from investing activities.

Explanation:

Net cash flow from Investing activities including all the cash inflows and outflows made again the investment in fixed asset.

Cash paid for investment in fixed asset is cash outflow from investing activities and Cash received from investment in fixed asset is cash inflow from investing activities.

Investment in Bonds and Common stock of another company are also considered as investment in fixed assets.

Cash Received Against the sale of Bond     $21,540

Cash paid to buy the common stock           ($1,450)  

Net cash Inflow from investing activities      $20,090

answer; be sure that the information on file is correct;

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.