Firefly Inc. sold land for $225,000 cash. The land had been purchased five years earlier for $275,000. The loss on the sale was

Question

2 years ago

10

Firefly Inc. sold land for $225,000 cash. The land had been purchased five years earlier for $275,000. The loss on the sale was

reported on the income statement. On the statement of cash flows, what amount should Firefly report as an investing activity from the sale of the land?

Business

1 answer:

solmaris [256] · Answer 1 · 2022-07-25T13:15:43+03:00

Answer:

$225,000

Explanation:

The cash flow statement is divided into three categories investing, operating and financing. The investing activity refers to those activities which deal in buying and selling for long term asset in cash. The buying is cash outflow while the selling is a cash inflow. So the amount reported under the investing activity is $225,000 as cash inflow.