Cash Flow from Investing Activities During 20X1, Sanchez Company had the following transactions: Sold $199,500 of 10-year bonds issued by Makenzie Inc. Acquired land valued at $69,600 in exchange for machinery. Sold equipment with original cost of $539,900 for $330,600; accumulated depreciation taken on the equipment to the point of sale was $180,500. Purchased new machinery for $120,800. Sold common stock in Lemmons Company for $54,600. Required: Question Content Area 1. Prepare the net cash from investing activities section of the statement of cash flows. (Note: Use a minus sign to indicate any decreases in cash or cash outflows.) Sanchez CompanyStatement of Cash Flows (Partial)Year Ending December 31, 20X1 Line Item Description Amount Cash flows from investing activities: Net cash from investing activities Land in exchange for machinery Purchase of new machinery Land in exchange for machinery $Sale of bonds Noncash investing activity: $Sale of common stock Question Content Area 2. Usually, the net cash from investing activities is negative. How can Sanchez cover this negative cash flow? What other information would you like to have to make this decision? Complete the items below that outline a response to the questions posed above.The negative cash flow from investing activities can be covered by using cash from . Select either "Yes" or "No" in response to the question What could Sanchez Company do to cover their negative cash flow? Line Item Description Answer Report profitable operations fill in the blank 1 of 6 Sell plant equipment fill in the blank 2 of 6 Issue capital stock fill in the blank 3 of 6 Purchase L-T assets fill in the blank 4 of 6 Issue L-T debt fill in the blank 5 of 6 Retire some capital stock fill in the blank 6 of 6

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: During 20X1, Craig Company had the following transactions: a. Purchased 300,000 of 10-year bonds...

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Question Content Area

1. Prepare the net cash from investing activities section of the statement of cash flows. (Note: Use a minus sign to indicate any decreases in cash or cash outflows.)

Sanchez CompanyStatement of Cash Flows (Partial)Year Ending December 31, 20X1

Line Item Description	Amount
Cash flows from investing activities:
	Net cash from investing activities
	Land in exchange for machinery
	Purchase of new machinery
	Land in exchange for machinery
	$Sale of bonds
Noncash investing activity:
	$Sale of common stock

Question Content Area

2. Usually, the net cash from investing activities is negative. How can Sanchez cover this negative cash flow? What other information would you like to have to make this decision? Complete the items below that outline a response to the questions posed above.

The negative cash flow from investing activities can be covered by using cash from

Select either "Yes" or "No" in response to the question What could Sanchez Company do to cover their negative cash flow?

Line Item Description	Answer
Report profitable operations	fill in the blank 1 of 6
Sell plant equipment	fill in the blank 2 of 6
Issue capital stock	fill in the blank 3 of 6
Purchase L-T assets	fill in the blank 4 of 6
Issue L-T debt	fill in the blank 5 of 6
Retire some capital stock	fill in the blank 6 of 6