Question

Equipment with a book value of $78,000 and an original cost of $168,000 was sold at a loss of $31,000. Paid $106,000 cash for a new truck. Sold land costing $315,000 for $420,000 cash, yielding a gain of $105,000. Long-term investments in stock were sold for $90,000 cash, yielding a gain of $15,500. Use the above information to determine this company's cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.)

Answer 1

$451,000

Step-by-step explanation:

The computation of cash flows from investing activities is shown below:-

Sale of equipment $47,000

($78,000 - $31,000)

Purchase of new truck ($106,000)

Sale of land $420,000

Sale of Long-term investments $90,000

Net cash provided by investing activities $451,000

Therefore to reach the cash flows from investing activities we simply added the sale of equipment, sale of land, sale of long term investments and deduct the purchase of new truck.