In preparing a company\'s statement of cash flows for the most recent year, the
ID: 2599559 • 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$ 14,400 Purchase of equipment149,000 Proceeds from the sale of equipment130,000 Repayment of outstanding bonds89,000 Purchase of treasury stock64,000 Issuance of common stock98,000 Purchase of land119,000 Increase in accounts receivable during the year45,000 Decrease in accounts payable during the year77,000 Payment of cash dividends37,000 Net cash flows from investing activities for the year were:
$138,000 of net cash provided by investing activities.
$123,600 of net cash used by investing activities.
$227,000 of net cash provided by investing activities.
$260,000 of net cash used by investing activities.
$138,000 of net cash used by investing activities.
Explanation / Answer
Calculate Net cash flows from investing activities for the year were
so answer is e) $138,000 of net cash used by investing activities.
Purchase of equipment (149000) Sale of equipment 130000 Purchase of land (119000) Net cash flow from investing activity (138000)