Question

Repurchase by the company of its own common stock $ 41,000 Sale of long-term investment $ 60,000 Interest paid to lenders $ 15,500 Dividends paid to the company's shareholders $ 70,000 Collection by McCorey of a loan made to another company $ 46,000 Payment of taxes to governmental bodies $ 25,500 On the statement of cash flows, some of these events are classified as operating activities, some are classified as investing activities, and some are classified as financing activities. Based solely on the information above, the net cash provided by (used in) investing activities on the statement of cash flows would be

Answer 1

Answer:

The net cash provided by investing activities on the statement of cash flows will be $106,000

Explanation:

Investing activities include all the cash transactions incurred for the fixed asset of the company.

The net cash provided by (used in) investing activities can be calculated as follows

Net cash provided by (used in) investing activities = Sale of long-term investment + Collection by McCorey of a loan made to another company

Where

Sale of long-term investment = $60,000 ( Cash inflow )

Collection by McCorey of a loan made to another company = $46,000 ( Cash Inflow )

Placing values in the fomrula

Net cash provided by investing activities = $60,000 + $46,000 = $106,000