a. Calculate the net amount of cash provided by or used for investing activities for the year. o. What impact, if any, do the following facts have on your calculation? (1) Equipment was sold at a $34,000 loss, and (2) land was sold at a $50,000 gain. c. Briefly explain your decision to exclude any of the items listed if they were not included in your calculation in part a.
a. Calculate the net amount of cash provided by or used for investing activities for the year. o. What impact, if any, do the following facts have on your calculation? (1) Equipment was sold at a $34,000 loss, and (2) land was sold at a $50,000 gain. c. Briefly explain your decision to exclude any of the items listed if they were not included in your calculation in part a.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Complete part a and b and part c if possible!
Transcribed Image Text:EXERCISE 13.13 Cash Flows from Investing Activities L LO13-4
Sorensen Company provides the following information related to its investing and financing activities for the current year.
Cash receipts:
Sale of common stock
$250,000
Sale of equipment (at $34,000 loss)
Sale of land (at $50,000 gain)
156,000
160,000
Cash payments:
Purchase of equipment
$178,000
Purchase of treasury stock
45,000
Retirement of debt
36,500
Dividends on preferred and common stock
75,000
a. Calculate the net amount of cash provided by or used for investing activities for the year.
b. What impact, if any, do the following facts have on your calculation? (1) Equipment was sold at a $34,000 loss, and (2) land was sold at a
$50,000 gain.
c. Briefly explain your decision to exclude any of the items listed if they were not included in your calculation in part a.
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