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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following accounts and corresponding balances were drawn from Drea Company’s Year 2 and Year 1 year-end
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?

Transcribed Image Text:Account
Investments
Land
Year 2
104,300
125,900
Year 1
117,300
98,500
1 Cash inflow or (outflow) related to Investments
2 Cash inflow or (outflow) related to Land
3 Net Cash from Investing Activities
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