Question

In preparing a company's statement of cash flows for the most recent year, the following information is available:

Answer 1

Answer:

Net cash used from investing activities is $253600

Explanation:

Given data

sale of equipment = $14,400,

Purchase of equipment = 149,000,

sale of equipment = 130,000

Purchase of land = 119,000

increase in accounts = 45,000

Decrease in accounts  = 77000

Payment of cash dividends = 37,000

to find out

Net cash flows from investing activities

solution

we will find net cash flow by equation this formula that is

Cash flow from investing  = sale of equipment -  Purchase of equipment - purchase of land      ...............1

put all value in equation 1 we get

Cash flow from investing  = 14400 -  149000 - 119000 = - 253600

so that

Net cash used from investing activities is $253600

Answer 2

Answer:

- $ 138,000

Explanation:

The investment activities includes the transaction done on purchasing the equipment and selling the land.

Thus, for the given question

The list of investment activities:

Purchase of Equipment = - $ 149,000  

Proceeds from Sales = $ 130,000  

Purchase of Land = - $ 119,000

here, the negative sign depicts the amount is paid

thus, the net cash flow from the investment activities

= - $ 149,000 + $ 130,000 + (- $ 119,000)

or

the net cash flow from the investment activities = - $ 138,000