Question

Bramble Corp. provided the following information on selected transactions during 2018: Purchase of land by issuing bonds $1010000 Proceeds from issuing bonds 3080000 Purchases of inventory 3760000 Purchases of treasury stock 610000 Loans made to affiliated corporations 1340000 Dividends paid to preferred stockholders 409000 Proceeds from issuing preferred stock 1590000 Proceeds from sale of equipment 305000 The net cash provided (used) by investing activities during 2018 is

Answer 1

Answer:

-$1,035,000

Explanation:

The computation of the cash flows from investing activities is presented below:

Cash flows from investing activities

Loans made to affiliated corporations -$1,340,000

Add: Process from sale of equipment $305,000

Net cash used by investing activities -$1,035,000

The loan made is an cash outflow whereas the proceeds from sale of an equipment is cash inflow so we did the adjustment accordingly