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a. Equipment with a book value of $65,300 and an original cost of $133,000 was sold at a loss of $14,000.
b. Paid $89,000 cash for a new truck.
c. Sold land costing $154,000 for $198,000 cash, yielding a gain of $44,000.
d. Long-term investments in stock were sold for $60,800 cash, yielding a gain of $4,150.

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

Respuesta :

Answer:

$221,100

Explanation:

The cash flow statements is a part of the financial statements that shows the net cash used or generated from the company's activities. These activities are the operating, investing and financing activities.

Operating activities considers the changes in current assets and liabilities. Investing involves the cash flows as a result of long term asset related activities while financing are more of long term debts and stock related activities.

Cash outflows are considered to be negative and inflows positive.

For an asset sold at a loss, the amount received must be less than the book value hence the loss

Amount received = $65,300 - $14,000

= $51,300

This company's cash flows from investing activities

= $51,300 - $89,000 + $198,000 + $60,800

= $221,100

This is the net cash generated by investing activities.

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