Question

Ayayai Corporation engaged in the following cash transactions during 2020. Sale of land and building $194,800 Purchase of treasury stock 46,900 Purchase of land 44,700 Payment of cash dividend 91,800 Purchase of equipment 58,200 Issuance of common stock 157,000 Retirement of bonds 102,900

Compute the net cash provided (used) by investing activities

Answer 1

Answer:

$91,900 (provided)

Explanation:

The cashflow statement shows how much cash has been used up or generated by the company's activities which are classified into 3 groups;

• Operating,
• investing and,
• Financing.

The sale of land and building, purchase of land and equipment are investing activities. Others are financing activities as they relate to owner's equity and long term debts.

The net cash provided (used) by investing activities

= $194,800 - $44,700 - $58,200

= $91,900