Transactions and income that affects the investments and fixed assets of the organization are known as investing activities. These activities record the inflow and outflow of cash from the investments. The cash flow from investing activities.

Question

Want to see the full answer?

Answer 1

Question

Chapter 12, Problem 9QS

To determine

Introduction: Transactions and income that affects the investments and fixed assets of the organization are known as investing activities. These activities record the inflow and outflow of cash from the investments.

The cash flow from investing activities.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Indicate the effect each separate transaction has on investing cash flows. Note: Amounts to be deducted should be indicated with a minus sign.. a. Sold a truck costing $40,000, with $22,000 of accumulated depreciation, for $8,000 cash. The sale results in a $10,000 loss. b. Sold a machine costing $10,000, with $8,000 of accumulated depreciation, for $5,000 cash. The sale results in a $3,000 gain. c. Purchased stock investments for $16,000 cash. The purchaser believes the stock is worth at least $30,000. Answer is not complete. Cash flows from investing activities Cash received from sale of truck Cash received from sale of machine Cash paid for purchase of investment S 8,000 5,000 (16,000) › › › $ (3,000)

Assume a company’s balance sheet showed beginning and ending balances in the Long-Term Investments account of $1,100,000 and $900,000, respectively. The company sold a long-term investment that cost $300,000 and recorded a gain on this sale of $35,000. Based solely on the information provided, the company’s net cash provided by (used in) investing activities would be: Multiple Choice $200,000. $300,000. $235,000. $335,000.

If a gain of $30,000 is incurred in selling (for cash) long-term investments having a book value of $180,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is a. $150,000. b. $180,000. c. $210,000. d. $30,000.