Question

In Angel Company, the Land account decreased $90,000 as a result of a cash sale for $100,000 and recognized a gain on the sale of $10,000. The Equipment account increased $20,000 as a result of a cash purchase. Angel Company also purchased a truck for $25,000 by issuing a five-year note. Bonds payable increased from an issuance of bonds for cash for $50,000. The net cash provided by investing activities is_____________.

a. $70,000.
b. $80,000.
c. $55,000.
d. $105,000.

Answer 1

correct option is b. $80,000

Step-by-step explanation:

given data

cash sale = $100,000

gain on sale = $10,000

Purchase of equipment = $20000

bonds for cash = $50,000

solution

we get here net cash that provide by investing activity that is

net cash = cash sale of land - Purchase of equipment ..............1

put here value and we get

net cash = $100,000 - $20000

net cash = $80000

so correct option is b. $80,000