Question

Land costing $79,700 was sold for $90,300 cash. The gain on the sale was reported on the income statement as other revenue. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land

Answer 1

Answer:

$90,300

Explanation:

As we know that the investing activities of the cash flow statement deals with the purchase and sale of the assets. The purchase of the assets represent the cash outflow and the sale of the asset represent the cash inflow

So according to the given situation the investing activities should report the sale value of the land i.e. $90,300 in a positive amount as it is a cash inflow