Question

Equipment with a book value of $65,300 and an original cost of $133,000 was sold at a loss of $14,000. Paid $89,000 cash for a new truck. Sold land costing $154,000 for $198,000 cash, yielding a gain of $44,000. Long-term investments in stock were sold for $60,800 cash, yielding a gain of $4,150. Use the above information to determine cash flows from investing activities.

Answer 1

Answer:

Net cash provided by investing activities $221,100

Explanation:

The computation of the cash flows from investing activities is shown below:

Sale of equipment (65300 - 14000) 51300

Less: Purchase of new truck -89000

Add: Sale of land   198000

Add: Sale of Long-term investments 60800

Net cash provided by investing activities $221,100