Question

Equipment with a book value of $80,000 and an original cost of $165,000 was sold at a loss of $36,000. Paid $109,000 cash for a new truck. Sold land costing $320,000 for $405,000 cash, yielding a gain of $85,000. Long-term investments in stock were sold for $96,300 cash, yielding a gain of $15,500. Use the above information to determine this company's cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.)

Answer 1

Net Cash flow from Investing activities $436,300

Step-by-step explanation:

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

Cash flows from investing activities

Sale of equipment $44,000 ($80,000 - $36,000)

Less: Purchase of new truck -$109,000

Sale of land $405,000

Sale of Long-term investments $96,300

Net Cash flow from Investing activities $436,300