Q14BE.

Question

Martinez Corporation engaged in the following cash transactions during 2017. 

Sale of land and building $191,000 

Purchase of treasury stock 40,000 

Purchase of land 37,000 

Payment of cash dividend 95,000 

Purchase of equipment 53,000 

Issuance of common stock 147,000 

Retirement of bonds 100,000 

Compute the net cash provided (used) by investing activities.

Step-by-Step Solution

Verified
Answer

The cash flow from investing activities is equal to $101,000.

1Definition of Investing activities

The cash flow statement reports all those activities as investing activities that include cash disbursement for purchase of a capital asset and cash receipt for sale of a capital asset.

2Cash from investing activities

Particular 

Amount $

Sale of land and building

$191,000

Purchase of land

(37,000)

Purchase of equipment

(53,000)

Cash from investing activities

$101,000