Final answer:
The cash flows used by investing activities for the year is $41,000, which includes a $26,000 inflow from equipment sale and outflows of $50,000 for land and $17,000 for a copyright, leading to a net outflow of $41,000.
Step-by-step explanation:
The cash flows from investing activities include all the purchases and sales of long-term assets and investments that are not considered cash equivalents. To determine the cash flows used by investing activities from the provided information, we will focus on the transactions relating to the sale and purchase of long-term assets.
We have the following transactions related to investing activities:
- Receipts from equipment sale: $26,000
- Payments for land: -$50,000
- Payments for a copyright: -$17,000
To calculate the net cash flow from investing activities, we sum these amounts. The cash inflow from the sale of equipment is $26,000, while the cash outflows for purchasing land and copyright are $50,000 and $17,000 respectively.
The net cash flow used in investing activities is calculated as follows:
Net cash flows used in investing activities = $26,000 (inflow) - $50,000 (land purchase outflow) - $17,000 (copyright purchase outflow) = - $41,000
This indicates that the company used $41,000 of cash for its investing activities during the year.