The following accounts and corresponding balances were drawn from Drea Company’s Year 2 and Year 1 year-end balance sheets.  (See below). Other information drawn from the accounting records: Drea incurred a $1,500 loss on the sale of investment securities during Year 2. The only transaction related to land was a purchase of land in Year 2. Requirements: Calculate the amount of cash inflow or (outflow) related to the investments account for Drea, Year 2. Calculate the amount of cash inflow or (outflow) related to the Land account for Year 2. Based on the above, what is Drea's cash flow from investing activities for Year 2?

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is