Question

In preparing Marjorie Company's statement of cash flows for the most recent year, the following information is available:

Purchase of equipment $260,000
Proceeds from the sale of equipment $87,000
Purchase of land $91,000

Net cash flows from investing activities for the year were:

a.

$438,000 of net cash used.

b.

$438,000 of net cash provided.

c.

$264,000 of net cash used.

d.

$351,000 of net cash used.

e.

$264,000 of net cash provided.

Answer 1

Answer: The answer is e. $264,000 of net cash provided.

Explanation:

Marjorie Company

Statement of cash flows

Purchase of equipment                                    ($260,000)

Proceeds from sale of equipment                        87,000

Purchase of land                                                   (91,000)

Net cash flows from investing activities        $264,000