Question

Martinez Corporation engaged in the following cash transactions during 2017

Answer 1

Answer:

Compute the net cash provided (used) by investing activities:

Sale of land and building                    $191,000

Purchase of land                                 ($37,000)

Purchase of equipment                      ($53,000)

Net cash flow from investing activities                      $101,000

Use the information presented for Martinez Corporation to compute the net cash used (provided) by financing activities:

Issuance of common stock                $147,000

Purchase of treasury stock               ($40,000)

Payment of cash dividend                ($95,000)

Retirement of bonds                        ($100,000)

Net cash flow from financing activities                   ($88,000)

Investing activities include the purchase or sale of assets that generate income, while financing activities include only the ones that affect paid in capital and long term debt.