sale price [cash flow)]= loss + book
(37,000) + 82,000 = 45,000
b. Paid $106,000 cash for a new truck.
Cash is cash: ($106,000)
c. Sold land costing $320,000 for $415,000 cash, yielding a gain of $95,000.
Cash flow is the sale price: $415,000 (again, technically you'd reduce this cash by the tax on the gain)
d. Long-term investments in stock were sold for $95,600 cash, yielding a gain of $17,000.
Cash = sale price: $95,600 (again, technically you'd reduce this cash by the tax on the gain)
Net cash flow from investing activities (not accounting for taxes):
Add them up: 45k - 106k + 415k + 95.6k = $449,600
Walk through these and make entries
a. Equipment with a book value of $82,000 and an original cost of $168,000 was sold at a loss of $37,000.
b. Paid $106,000 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 $95,600 cash, yielding a gain of $17,000.
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.)
