I'm taking a distance learning course in Accounting, I've read the 2 pages dedicated to the topic of cash flows, I'm really confused and need help. I know the Statement of Cash Flows consists of Operating activities, Investing activities and Finacing activities, but I'm confused as to what figures to use, here is my problem
Conrad Company reported revenues of $215,000 and net income of $60,000 for 2007.Cash generated by operations was $55,000. In addition, Conrad Company borrowed $36,000 from a bank. During 2007, Conrad bought new equipment for $30,000 cash and paid cash dividends of $20,000 to stockholders. What is the amount of cash flows from investing activities?
A. $16,000
B. $55,000
C. ($30,000)
D. ($36,000)
I'm not asking for the answer, just how to figure this out. Please Help me understand!