Question

In Marigold Company, land decreased $156000 because of a cash sale for $156000, the equipment account increased $58000 as a result of a cash purchase, and Bonds Payable increased $113000 from issuance for cash at face value. The net cash provided by investing activities is

Answer 1

Answer:

$ 98,000.00  

Explanation:

The net cash provided by investing activities is the  difference between cash provided by disposal of land which is $156,000 minus the cash paid to acquire equipment which was $58,000.

Net cash provided by investing activities=$156,000-$58,000=$ 98,000.00  

The cash received from bonds issuance of $113,000 is a cash inflow under financing activities not finance-activity related,hence it is not included in the computation above.