Three Gray Ladies, Inc. had the following activities during the year. What would be reported on the Statement of Cash Flows as the net cash flow from investing activities? • Sold equipment with a $50,000 book value for a gain of $12,000. • Paid $34,000 on a long-term note payable. • Received $100,000 from common stock issuance. • Purchased land. Paid a down payment of $10,000. The balance of $90,000 will be paid via a five-year promissory note with quarterly payments. • Purchased an investment of IBM Stock for $5,000. Paid $17,000 cash for purchase of merchandise inventory.

Three Gray Ladies, Inc. had the following activities during the year. What would be reported on the Statement of Cash Flows as the net cash flow from investing activities? • Sold equipment with a $50,000 book value for a gain of $12,000. • Paid $34,000 on a long-term note payable. • Received $100,000 from common stock issuance. • Purchased land. Paid a down payment of $10,000. The balance of $90,000 will be paid via a five-year promissory note with quarterly payments. • Purchased an investment of IBM Stock for $5,000. Paid $17,000 cash for purchase of merchandise inventory.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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