Question

A. Equipment with a book value of $79500 and an original cost of $169000 was sold at a loss of $33000.

b. Paid $106000 cash for a new truck.
c. Sold land costing $310000 for $420000 cash yielding a gainof $11000.
d. Long term investments in stock were sold for $95600 cash yielding a gain of $17000.

Required:
Use the above information to determine this company's cash flows from investing activities.

Answer 1

Cash flow from Investing activities refers to cash transactions related to Fixed Assets as well as transactions related to the ownership of other company securities.

Cash-flow from Investing Activities

Sale of equipment (79,500 - 33,000).......................... $46,500

Purchase of New Truck ................................................... ($106,000)

Sale of Land.........................................................................$420,000

Sale of Long-term investments.......................................$95,600

Net cash provided by investing activities ...................$456,100