单选题
Capital Corp.'s activities in the year 2005 included the following: At the beginning of the year, Capital purchased a cargo plane from Aviation Partners for $10 million in a transaction consisting of $ 2 million cash, $ 3 million in Capital Corp. bonds and $ 5 million in Capital Corp. preferred stock. Interest of $150000 was paid on the bonds, and dividends of $ 250000 were paid on the preferred stock. At the end of the year, the cargo plane was sold for $12000000 cash to Standard Company. Proceeds from the sale were used to pay off the $ 3 million in bonds held by Aviation Partners. On Capital Corp.'s Statement of Cash Flow for the year ended December 31, 2005, cash flow from investments (CFI) related to the above activities is:
【正确答案】
B
【答案解析】Investing cash of $ 2 million was used to purchase the cargo plane. Proceeds from the sale of the plane were a source of $12 million of investing cash. Net CFI is $12 million-$ 2 million=$10 million. The interest payment is included in cash from operations (CFO) and the dividend payment in cash from financing (CFF). Redemption of the bonds is a use of cash from financing (CFF).