Final answer:
Kester Corp. should report the $140,000 increase in its land account under investing activities in the statement of cash flows. The exact nature of the transaction would determine if it results in a decrease in cash or is disclosed as a non-cash transaction.
Step-by-step explanation:
The student has asked how Kester Corp. should report an increase of $140,000 in its land account on the statement of cash flows when no specific details regarding this increase are available. In the statement of cash flows, this transaction would likely be recorded under investing activities, as the purchase of land typically reflects a long-term investment in property. However, without specific details, it cannot be said with certainty whether it was a cash transaction or a non-cash financing or investing activity. In the case of a cash purchase, a decrease in cash would be reported. If the land was acquired through non-cash means, such as issuing equity or debt, it would be disclosed in a separate schedule of non-cash investing and financing activities attached to the cash flow statement.