Question

Use the following information to determine this company’s cash flows from investing activities.

1. Equipment with a book value of \(65,300 and an original cost of \)133,000 was sold at a loss of \(14,000.
2. Paid \)89,000 cash for a new truck.
3. Sold land costing \(154,000 for \)198,000 cash, yielding a gain of \(44,000.
4. Long-term investments in stock were sold for \)60,800 cash, yielding a gain of $4,150.

Short answer

Net cash flow from investing activities is $221,100

Step-by-step solution

Meaning of Investing Activities

The second significant type of net cash activities included on the statement of cash flows is investing activities, which include purchasing and selling long-term assets and other investments. It is the sum of the net cash received and paid for long-term assets and investments throughout an accounting period.

Determining investing activities

Cash flow from investing activities:
Proceeds from the sale of equipment($65,300-$14,000)	$ 51,300
Purchase of new truck	(89,000)
Proceeds from the sale of land	198,000
Proceeds from the sale of investments	60,800
Net cash flow from investing activities	$221,100