Question

Cash flows from investing activities: a. Equipment with a book value of $79,000 and an original...

Cash flows from investing activities:

a. Equipment with a book value of $79,000 and an original cost of $166,000 was sold at a loss of $31,000.
b. Paid $109,000 cash for a new truck.
c. Sold land costing $320,000 for $415,000 cash, yielding a gain of $95,000.
d. Long-term investments in stock were sold for $97,700 cash, yielding a gain of $16,250.

   

Use the above information to determine this company's cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.)
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Answer #1

Solution :

The company's cash flows from investing activities = $ 451,700

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

Note :

Cash proceeds from sale of equipment = Book value of equipment - Loss on sale of equipment

= $ 79,000 - $ 31,000 = $ 48,000

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