Instructions

Drugs N Pills is engaged in the development and production of pharmaceutical products. Listed below are transactions from the financial records of the company. Think about whether each of these transactions represents a cash inflow or a cash outflow from investing activities.

a)	Purchase of new equipment for the laboratories	Choose... Cash inflows from investing activities Cash outflows from investing activities
b)	Sale of surplus equipment to Drug Developers Limited	Choose... Cash inflows from investing activities Cash outflows from investing activities
c)	Surplus cash placed in a long-term bond investment	Choose... Cash inflows from investing activities Cash outflows from investing activities
d)	Land bought on which to build a new laboratory facility	Choose... Cash inflows from investing activities Cash outflows from investing activities
e)	Interest income on the long-term bond investment	Choose... Cash inflows from investing activities Cash outflows from investing activities
f)	Sale of drug patents to Drug Developers Limited	Choose... Cash inflows from investing activities Cash outflows from investing activities
g)	Development costs of a new drug	Choose... Cash inflows from investing activities Cash outflows from investing activities
h)	Bank interest received on cash deposits	Choose... Cash inflows from investing activities Cash outflows from investing activities

 

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