IZ Corporation purchased land for $500,000. Later in the year, the company sold a different piece of land with a book value of $250,000 for $280,000. How are the effects of these transactions reported on the statement of cash flows assuming the indirect method is used? Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, seled "No effect" from the drop down menu and leave the amount box blank. Transactions Action Amount $ Gain on sale of land Deducted from net income Cash received from sale of Part of cash flows from investing activities land Cash paid for purchase of Part of cash flows from investing activities land
IZ Corporation purchased land for $500,000. Later in the year, the company sold a different piece of land with a book value of $250,000 for $280,000. How are the effects of these transactions reported on the statement of cash flows assuming the indirect method is used? Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, seled "No effect" from the drop down menu and leave the amount box blank. Transactions Action Amount $ Gain on sale of land Deducted from net income Cash received from sale of Part of cash flows from investing activities land Cash paid for purchase of Part of cash flows from investing activities land
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I know that to find the cahs flows from investing activities its like this:
cash used for investing activities $xxx=
Net Cash Flow from investing activities $xxx
But each time I compute this problem it keeps saying incorrect. I am so confused. I tried multiple different times.
Transcribed Image Text:IZ Corporation purchased land for $500,000. Later in the year, the company sold a different piece of land with a book value of $250,000 for $280,000.
How are the effects of these transactions reported on the statement of cash flows assuming the indirect method is used? Use the minus sign to indicate
cash outflows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select
"No effect" from the drop down menu and leave the amount box blank.
Transactions
Action
Amount
$
Gain on sale of land
Deducted from net income
Cash received from sale of
Part of cash flows from investing activities
land
Cash paid for purchase of
Part of cash flows from investing activities
land
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