Question

1. Issued $45000 of par value common stock for cash. 2. Repaid a 6 year note payable in the amount of $21000. 3. Acquired land by issuing common stock of par value $95000. 4. Declared and paid a cash dividend of $1500. 5. Sold a long-term investment (cost $2500) for cash of $7500. 6. Acquired an investment in IBM stock for cash of $14500. What is the net cash provided used by investing activities

Answer 1

($7,000)

Step-by-step explanation:

According to the scenario, computation of the given data are as follows,

Sold a long term investment = $7,500

Acquired investment in IBM = $14,500

So, we can calculate the net cash provided by using following formula,

Net cash provided = Sold a long term investment - Acquired investment in IBM

By putting the value, we get

Net cash provided = $7,500 - $14,500

= ($7,000)