Question

Novak Corp.had the following transactions during 2022: 1. Issued $205000 of par value common stock for cash. 2. Recorded and paid wages expense of $98400. 3. Acquired land by issuing common stock of par value $82000. 4. Declared and paid a cash dividend of $16400. 5. Sold a long-term investment (cost $4920) for cash of $4920. 6. Recorded cash sales of $656000. 7. Bought inventory for cash of $262400. 8. Acquired an investment in Zynga stock for cash of $34440. 9. Converted bonds payable to common stock in the amount of $820000. 10. Repaid a 6-year note payable in the amount of $360800. What is the net cash provided by investing activities

Answer 1

Answer:

($111,520)

Explanation:

Novak Corp.had the following transactions during 2022:

1. Issued $205000 of par value common stock for cash.

2. Recorded and paid wages expense of $98400.

3. Acquired land by issuing common stock of par value $82000.

4. Declared and paid a cash dividend of $16400.

5. Sold a long-term investment (cost $4920) for cash of $4920.

6. Recorded cash sales of $656000.

7. Bought inventory for cash of $262400.

8. Acquired an investment in Zynga stock for cash of $34440.

9. Converted bonds payable to common stock in the amount of $820000. 10. Repaid a 6-year note payable in the amount of $360800.

Items that may be included in the investing activities line item include the following:

Purchase of fixed assets (negative cash flow)

Sale of fixed assets (positive cash flow)

Purchase of investment instruments, such as stocks and bonds (negative cash flow)

Sale of investment instruments, such as stocks and bonds (positive cash flow)

Lending of money (negative cash flow)

Collection of loans (positive cash flow)

Proceeds of insurance settlements related to damaged fixed assets (positive cash flow)

Therefore:

The net cash provided by investing activities

1. Acquired land by issuing common stock of par value ($82000).

2. Sold a long-term investment (cost $4920) for cash of $4920

3. Acquired an investment in Zynga stock for cash of    ($34440).

NET CASH FLOW FROM INVESTING ACTIVITIES.............($111,520)