In preparation for developing its statement of cash flows for the year ended December 31, 2021, Rapid Pac, Inc., collected the following information: ($ in millions)

Fair value of shares issued in a stock dividend $ 92.0

Payment for the early extinguishment of long-term bonds (book value: $87.0 million) 92.0

Proceeds from the sale of treasury stock (cost: $23.0 million) 28.0

Gain on sale of land 3.2

Proceeds from sale of land 9.6

Purchase of Microsoft common stock 154.0

Declaration of cash dividends 57.0

Distribution of cash dividends declared in 2020 53.0

In Rapid Pac's statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2021?

Answer: ($144.4 million)

Explanation:

The Cashflows related to Investing Activities in the Cashflow statement refer to those cash transactions that have to do with either fixed assets or transactions involving the stocks and bonds of other companies.

Looking at Rapid Pac's figures, only 2 transactions fall under this section.

That would be the Proceeds from sale of land and the Purchase of Microsoft common stock.

Gain on sale of Land is a non cash operating activities item so is not included.

The net cash inflows (or outflows) from investing activities for 2021 is therefore,

= 9.6 (cash inflow) - 154 (cash Outflow)

= - $144.4

= ($144.4 million)

In Rapid Pac's statement of cash flows there was a net cash Outflow of ($144.4 million)