Question

Martinez Corporation engaged in the following cash transactions during 2017

Sale of land and building. $191,000
Purchase of treasury stock. 40,000
Purchase of land. 37,000
Payment of cash dividend 95,000
Purchase of equipment. 53,000
Issuance of common stock. 147,000
Retirement of bonds 100,000

Compute the net cash provided (used) by investing activities

Use the information presented for Martinez Corporation to compute the net cash used (provided) by financing activities

Answer 1

Compute the net cash provided (used) by investing activities:

Sale of land and building $191,000

Purchase of land ($37,000)

Purchase of equipment ($53,000)

Net cash flow from investing activities $101,000

Use the information presented for Martinez Corporation to compute the net cash used (provided) by financing activities:

Issuance of common stock $147,000

Purchase of treasury stock ($40,000)

Payment of cash dividend ($95,000)

Retirement of bonds ($100,000)

Net cash flow from financing activities ($88,000)

Investing activities include the purchase or sale of assets that generate income, while financing activities include only the ones that affect paid in capital and long term debt.