Question

The following information on selected cash transactions for 2021 has been provided by Coronado Industries: Proceeds from sale of land $319000 Proceeds from long-term borrowings 601000 Purchases of plant assets 219000 Purchases of inventories 1028000 Proceeds from sale of Coronado common stock 370000 What is the cash provided (used) by investing activities for the year ended December 31, 2021, as a result of the above information

Answer 1

Answer:

$100,000

Explanation:

Coronado Industries

CASH FLOW STATEMENT

For the year ended December 31, 2021

Cash Flow from Investing Activities:

Proceeds from sale of land                  $319,000

Less: Purchases of plant assets          ($219,000)

Net Cash used in Investing Activity $100,000

Answer 2

Answer:

$100,000

Explanation:

cash flow from investing activities:

cash proceeds from sale of land $319,000

- purchase of plant assets ($219,000)

net cash flow from investing activities = $100,000

Cash flows from investing activities include only those purchases and sales of assets that are used by the company to generate revenue, e.g. plant and equipment, land, investment in stocks in other companies, etc.