Part 4. Investing Activities Style Squared provided the following information on
ID: 2490789 • Letter: P
Question
Part 4. Investing Activities
Style Squared provided the following information on transactions that occurred during the year:
{C}a. An old plant was purchased for $300,000 was sold for $93,000.
{C}b. Style squared purchased $45,000 in stock from Avett Systems.
{C}c. A new production plant was purchased for $550,000 cash.
{C}d. Stock in Iver Inc. was sold for $23,000.
{C}e. New equipment was purchased for $13,000.
Use this information to compute cash flows from investing activities. Enter your answers in the shaded boxes below. A couple of boxes have been completed for you.
Cash flows from investing activities
Purchase of production plant
$550,000
Sale of plant
93,000.00
Purchased of stock from Avett system
(45,000.00)
Purchased of new production plant This is already listed on the first line. On this line you should list “Sale of Iver Inc. Stock”
Purchased of new equipment
(13,000.00)
Net cash used in investing activities
Cash flows from investing activities
Purchase of production plant
$550,000
Sale of plant
93,000.00
Purchased of stock from Avett system
(45,000.00)
Purchased of new production plant This is already listed on the first line. On this line you should list “Sale of Iver Inc. Stock”
Purchased of new equipment
(13,000.00)
Net cash used in investing activities
Explanation / Answer
Cash flow from investing activities Sale of old plant $ 93,000.00 Purchase of stock of Avett Systems $ -45,000.00 Purchase of production peant $ -55,00,000.00 Sale of stock in Iver Inc $ 23,000.00 Purchase of new equipment $ -13,000.00 Net cash used in investing activities $ -54,42,000.00