Knowledge Check 01 Selected information from Marie Corporation's accounting records and financial statements is as follows: Cash paid to acquire machinery $ 32,000 Retired common stock 59,000 Proceeds from sale of land 100,000 Gain from the sale of land 53,000 Investment revenue received 72,000 Cash paid to acquire office equipment 90,000 What are the net cash flows from investing activities that will be reported in the statement of cash flows? (Enter net cash outflows with a minus sign.)

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Business

Ronan Horton

1 June, 12:58

Knowledge Check 01 Selected information from Marie Corporation's accounting records and financial statements is as follows: Cash paid to acquire machinery $ 32,000 Retired common stock 59,000 Proceeds from sale of land 100,000 Gain from the sale of land 53,000 Investment revenue received 72,000 Cash paid to acquire office equipment 90,000 What are the net cash flows from investing activities that will be reported in the statement of cash flows? (Enter net cash outflows with a minus sign.)

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Bianca Benton · Answer 1

Answer: - ($22,000)

Explanation:

Given that,

Cash paid to acquire machinery = $32,000

Retired common stock = $59,000

Proceeds from sale of land = $100,000

Gain from the sale of land = $53,000

Investment revenue received = $72,000

Cash paid to acquire office equipment = $90,000

Net cash flows from investing activities:

= Proceeds from sale of land - Cash paid to acquire machinery - Cash paid to acquire office equipment

= $100,000 - $32,000 - $90,000

= - ($22,000)