Question

A company had the following cash flows for the year: (a) Purchased inventory, $60,000 (b) Sold goods to customers, $90,000 (c) Received loan from a local bank, $150,000 (d) Purchased land, $180,000 (e) Purchased treasury stock, $40,000 (f) Paid dividends, $10,000 (g) Sold delivery truck, $30,000 What amount would be reported for net investing cash flows on the Statement of Cash Flows

Answer 1

Answer:

($150000)

Explanation:

The computation of the net investing cash flows is shown below;

Purchase of land                                           ($180,000)

Sale of delivery truck                                     $30,000

Net Cash used in Investing activities            ($150000)

The purchase of land is an outflow of cash and the sale of delivery truck is a inflow of cash so it would be shown in a negative and positive amount

Thus all other values would be ignored