Question

Skysong Corporation had the following activities in 2020.

1. Sale of land $168,000.
2. Purchase of inventory $780,000.
3. Purchase of treasury stock $67,000.
4. Purchase of equipment $413,000.
5. Issuance of common stock $331,000.
6. Purchase of available-for-sale debt securities $60,000.
Compute the amount Wainwright should report as net cash provided (used) by investing activities in its 2017 statement of cash flows.

Answer 1

Net cash used by investing activities ($305,000)

Step-by-step explanation:

The computation of the net cash provided (used) by investing activities is shown below;

Cash flows from investing activities

Proceeds from Sale of land $168,000

Purchase of equipment ($413,000)

Purchase of available-for-sale securities ($60,000)

Net cash used by investing activities ($305,000)