Question

Flow Company has provided the following information for the year ended December 31, 2019: Cash paid for interest, $25,000 Cash paid for dividends, $7,000 Cash dividends received, $5,000 Cash proceeds from bank loan, $39,000 Cash purchase of treasury stock, $16,000 Cash paid for equipment purchase, $32,000 Cash received from issuance of common stock, $42,000 Cash received from sale of land with a $37,000 book value, $29,000 Acquisition of land costing $56,000 in exchange for preferred stock issuance. Payment of $150,000 note payable by exchanging used machinery with a $82,000 book value and $150,000 fair value How much was Flow's net cash flow from investing activities?

Answer 1

Answer:

Net cash flow from investing activities = $5,000

Explanation:

As per the data given in the question,

Cash paid for interest = $25,000

Cash paid for dividend = $7,000

Cash dividend received = $5,000

Cash fro, bank loan = $39,000

Cash paid to purchase equipment = $32,000

Cash received from selling the land = $37,000

Net cash flow from investing activities = Cash received from selling the land - Cash paid to purchase equipment

= $37,000 -$32,000

= $5,000