Question

The following information on selected cash transactions for 2011 has been provided by Mancuso Company:

Proceeds from sale of land $160,000
Proceeds from long-term borrowings 400,000
Purchases of plant assets 144,000
Purchases of inventories 680,000
Proceeds from sale of Mancuso common stock 240,000
What is the cash provided (used) by investing activities for the year ended December 31, 2011, as a result of the above information?
a. $16,000.
b. $256,000.
c. $160,000.
d. $800,000.

Answer 1

a. $16,000.

Step-by-step explanation:

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

Cash flow from investing activities

Proceeds from the sale of land $1,60,000

Less:

Purchase of plant asset -$1,44,000

Net cash flows provided by investing activities $16,000

hence, the correct option is a. $16,000