In preparing a company\'s statement of cash flows for the most recent year, the
ID: 2463627 • Letter: I
Question
In preparing a company's statement of cash flows for the most recent year, the following information is available:
Net cash flows from investing activities for the year were:
a) $234,000 of net cash used.
b) $120,000 of net cash provided.
c) $340,000 of net cash used.
d) $259,000 of net cash used.
e) $280,000 of net cash provided.
Loss on the sale of equipment $14,000 Purchase of equipment $225,000 Proceeds from the sale of equipment $106,000 Repayment of outstanding bonds $87,000 Purchase of treasury stock $25,000 Issuance of common stock $96,000 Purchase of land $115,000 Increase in accounts receivable during the year $33,000 Decrease in accounts payable during the year $75,000 Payment of cash dividents $35,000Explanation / Answer
a) $234,000 of net cash used. Statement showing cash flow from Investing Activities Particulars Amount Purchase of Equipment (225,000.00) Proceeds from sale of equipment 106,000.00 Purchase of Land (115,000.00) Cash used by Investing Activities (234,000.00)