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Please answer asap Woozles Company acquired a building by paying $130,000 cash downpayment and issuing a...

Please answer asap

Woozles Company acquired a building by paying $130,000 cash downpayment and issuing a note payable for the balance of the building’s cost $450,000. Depreciation expense relating to the building for the year was $11,250.

What is the amount of the investing cash inflow (outflow) relating to this transaction?

If the transaction results in a cash inflow, enter as a positive number. Examples: 1003 or 20058

If the transaction results in a cash outflow, enter as a negative number. Examples: -1003 or -20058 -

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Answer #1

The amount of the investing cash outflow relating to this transaction = - $130,000

When an asset is purchased it is record under investing activity. In the given case only a sum of $130,000 has been paid in cash to purchase building so it will be recorded as cash outflow from  investing activity.

Issuing a note payable is a financing activity . Hence not considered as only investing activity is asked in the question .

Depreciation expense is non cash item considered in operating activity.

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