Answer:
$747000.
Explanation:
Given: Book value of building is $864000.
Loss incurred= $117000.
Now, finding total amount of cash flow from investing activities.
Cash received= [tex]Book\ value- loss\ incurred[/tex]
⇒ Cash received= [tex]\$ 864000- \$ 117000= \$ 747000.[/tex]
∴ Cash received = $747000.
The total amount reported in the cash flows from investing activities section of the statement of cash flows is $747000.
Cash flow from investing activities are the cash earned or spent through investing activities in a perticular period of time. Investment activities include all purchase and sales of physical assest or investment of securities. Negative cash flow from investing activities may not be bad sign, if company is investing in the long term gain of the company.
The $747000 would be included as negative cash flow from investing activities.
