Question

In preparing a company's statement of cash flows for the most recent year, the following information is available:

Loss on the sale of equipment $14,100
Purchase of equipment 146,000
Proceeds from the sale of equipment 127,000
Re-payment of outstanding bonds 87,500
Purchase of treasury stock 62,500
Issuance of common stock 96,500
Purchase of land 116,000
Increase in accounts receivable during the year 43,500
Decrease in accounts payable during the year 75,500
Payment of cash dividends 35,500
Net cash flows from investing activities for the year were:______.
a. $128,100 of net cash used.
b. $143,000 of net cash used.
c. $270,000 of net cash used.
d. $143,000 of net cash provided.
e. $234,500 of net cash provided.

Answer 1

$135,000 of net cash used

Step-by-step explanation:

Cashflow from Investing Activities Section

Purchase of equipment (146,000)

Proceeds from the sale of equipment 127,000

Purchase of land (116,000)

Net Cash from Investing Activities (135,000)

therefore,

Net cash flows from investing activities for the year were ($135,000)