Answer:
Net investing cash flow = $5,300,000 outflow
Explanation:
Acquisition of stock in another firm = $2,200,000 (outflow)
+ Short-term investment acquisition = $500,000 (outflow)
- Proceeds from equipment sale = $800,000 (inflow)
+ Equipment acquisition = $3,400,000 (outflow)
Net cash flow from Investing activities = $5,300,000 (outflow)
The net investing cash flow amounts to $5,300,000 outflow
Net cash flow is calculated by adding money earned from asset sales, stocks, bonds, or loan repayments, and then deducting money spent on assets, loans, or investments. The result is what you see reported in the cash flow statement as Net Cash Flow.