Question

Spackel Corporation recorded the following events last year: Issuance of shares of the company's own common stock $ 380,000 Purchase of long-term investment $ 40,000 Dividends paid to the company's own shareholders $ 18,000 Cash paid to suppliers for inventory purchases $ 12,000 Repayment of principal on the company's own bonds $ 370,000 Interest paid to lenders $ 6,000 Collection by Spackel of a loan made to another company $ 110,000 Purchase of equipment $ 350,000 On the statement of cash flows, some of these events are classified as operating activities, some are classified as investing activities, and some are classified as financing activities. Based solely on the information above, the net cash provided by (used in) investing activities on the statement of cash flows would be: Multiple Choice $(280,000) $(760,000) $(1,286,000) $(390,000)

Answer 1

The net cash provided by (used in) investing activities for Spackel Corporation is $(280,000). This includes the purchase of a long-term investment, collection of a loan, and purchase of equipment, which are classified as investing activities on the statement of cash flows.

Step-by-step explanation:

The statement of cash flows for Spackel Corporation segregates different types of cash flows into operating, investing, and financing activities. To calculate the net cash provided by (used in) investing activities, we need to consider transactions that involve the acquisition and disposal of long-term investments, property, plant, and equipment.

Here's the breakdown of investing activities based on the information provided:

• Purchase of long-term investment: ($40,000)
• Collection by Spackel of a loan made to another company: $110,000
• Purchase of equipment: ($350,000)

Sum these figures to find the total net cash used in investing activities:

Net cash used in investing activities = ($40,000) + $110,000 + ($350,000) = ($280,000)

Therefore, the correct answer to the multiple-choice question is $(280,000), which signifies that Spackel Corporation used $280,000 in net cash for its investing activities.

Answer 2

$(280,000)

Step-by-step explanation:

The computation of the net cash provided or used by investing activities is given below:

Purchase of long-term investment -$40,000

Collection by Spackel of a loan made to another company $110,000

Purchase of equipment -$350,000

Net cash used by operating activities -$280,000