Question

Use the following information about Can Corporation for 2017. Accounts payable increase $10,000 Accounts receivable increase 5,000 Accrued liabilities decrease 4,000 Amortization expense .. 7,000 Cash paid as dividends ... 30,000 Cash paid to purchase land 85,000 Cash paid to retire bonds payable at par . 55,000 Cash received from issuance of common stock . 40,000 Cash received from sale of equipment . 20,000 Depreciation expense . 30,000 Gain on sale of equipment . 5,000 Inventory decrease .. 12,000 Net income 75,000 Prepaid expenses increase 1,000 What is the net cash flow from investing activities

Answer 1

Can Corporation

The net cash flow from investing activities:

= ($65,000)

Step-by-step explanation:

a) Investing activities:

Cash paid to purchase land (85,000)

Cash received from sale of equipment 20,000

Net cash from investing activities ($65,000)

b) Only two activities are involved in this example concerning investments. The net cash from investing activities shows a negative balance of $65,000, which is an application of funds. This indicates that more cash was spent on investing activities than was received from the same sources.