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Hello Professor !
Q:
During the year to 30 April 20X7 Jaunty had purchased non-current assets which cost $687,000. The company financed the purchases by taking out loans totalling $597,000, and paying the balance in cash. In addition, non-current assets with a carrying amount of $75,000 were sold at a loss of $15,000.What figure should appear for net cash used in investing activities in the statement of cash flows for the year to 30 April 20X7? $_____
The correct answer is $60000.
The full cost of purchase of non-current assets is $687,000 (regardless of how it is financed) and proceeds from the sale of non-current assets is $60000 (75 ? 15)
My answer is (627000) but the study hub shows the above one !
kindly help meThe correct answer is indeed $627,000.
It is a mistake in the Study Hub.
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