In preparing a company\'s statement of cash flows for the most recent year, the
ID: 2579866 • Letter: I
Question
In preparing a company's statement of cash flows for the most recent year, the following information is available Loss on the sale of equipment Purchase of equipment Proceeds from the sale of equipment Repayment of outstanding bonds Purchase of treasury stock Issuance of common stock Purchase of land Increase in accounts receivable during the year Decrease in accounts payable during the year Payment of cash dividends $ 15,600 161,000 142,000 95,000 70,000 104,000 131,000 51,000 83,000 43,000 Net cash flows from investing activities for the year were O $150,000 of net cash used O $284.000 of net cash used $245,000 of net cash provided. $150,000 of net cash provided $134,400 of net cash usedExplanation / Answer
Net Cash flows from Investing Activities = -Purchase of equipment + Proceeds from the sale of equipment - Purchase of land
Net Cash flows from Investing Activities = -$161,000 + $142,000 - $131,000
Net Cash flows from Investing Activities = -$150,000
So, Net Cash flows from Investing Activities for the year were $150,000 of net cash used