Question

The following are data concerning cash received or paid from various transactions for Orange Peels Corporation: Sale of land $100,000 Sale of equipment 50,000 Issuance of common stock 70,000 Purchase of equipment 30,000 Payment of cash dividends 60,000 How much is net cash provided by investing activities?

Answer 1

$120,000

Step-by-step explanation:

Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash

The computation is shown below:

Cash flow from Investing activities

Sale of land $100,000

Sale of equipment 50,000

Less: Purchase of equipment -30,000

Net Cash flow from Investing activities $120,000

The other transactions are related to the financing activity so we do not consider it in the computation part