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katen-ka-za [31]
3 years ago
10

Simkin Corporation purchased land for $420,000. Later in the year, the company sold a different piece of land with a book value

of $155,000 for $110,000.How are the effects of these transactions reported on the statement of cash flows? Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank.
Business
1 answer:
Murrr4er [49]3 years ago
7 0

Answer:

Transaction                     Amount        Statement of cash-flow

Purchase of land            420000         Investing activities

Sale of land                     110000          Investing activities

Loss on sale of land        45000          Operating activities

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