QUESTION $3$

Holden Company's fixed asset footnote included the following:

During $2019,$ Holden sold machinery for a gain of $$100,000.$ The machinery had an original cost of $$500,000$ and its accumulated depreciation was $$240,000.$

At the end of $2019,$ Holden purchased machinery at a cost of $$1,000,000.$ Holden paid $$400,000$ cash. The balance was financed by the seller at $8\%$ interest.

Depreciation expense was $$2,080,000$ for the year ended $2019.$

Calculate Holden's cash flow from investing activities for the year ended $2019.$

A$.$ $$350,000$ cash inflow

B$.$ $$300,000$ cash inflow

C$.$ $$40,000$ cash outflow

QUESTION $4$

Which of the following is most likely to appear in the operating section of a cash flow statement under the indirect method?

A$.$ Net income.

B$.$ Cash paid to suppliers.

C$.$ Cash received from customers.