5 NEW TOPIC Corporation Balancew TOPIC Corporation Balance S

5 NEW TOPIC Corporation Balancew TOPIC Corporation Balance Sheet (in $Millions Assets Liabilities & Owners Equity Last Current Year Year Last Current YearYear Current Assets Current Liabilities 385 $ 445 S 586 S 646 Long-Term Debt 2,998 S 3,015 s 3,584 3,661 1.966 2.789 5 5,550 S 6450 Total Liab. And Equity s 5,550 S 6450 $ 213 $ 281 Accounts Payable Cash Accounts Receivable457461 Notes Payable 665 Inventory Total 554 Total s 1,335 $ 1,296 Fixed Assets PP&E; Accumulated Dep. 909 1274 Net PP&E; $ 5,124 $ 6,428 Total Liabilities S 4.215 S 5.154 Oners Equity Total Assets NEW TOPIC Corporation Income Statement Current Year NEW TOPIC Corporation Current Year Income Statement (in $Millions) S 2,877 Sales Cost of Goods Sold Depreciation Earnings Before Interes and Taxes 1.012 1.500 S 1,500 Earnings Before Taxes Taxes Net Income Retained Earnings Dividends S 823 S 157 What is the cash flow from investing in millions? -$1,304 $1,304 $939

Solution

Cash flow from investing activities = PP&E last year-PP&E current year = 5124-6428= -1304 Option 1 is correct