Concept #1: Investing Activities Summary

Example #1: Investing Activities

Practice: Which of the following is a cash flow from investing activities?

Practice: The cash received from the sale of factory equipment no longer in use would be reported in the cash flow statement as an:

Practice: Spooky Company is preparing its Statement of Cash Flows and gathered the following information: 

1. Since the previous year: the cash account increased by $35,000, land increased by $40,000, Equipment decreased by $15,000, Accumulated Depreciation – Equipment increased by $6,000, and Bonds Payable increased by $100,000 

2. Depreciation expense for Equipment totaled $16,000. 

3. Equipment with a purchase price of $15,000 was sold for a $2,000 gain. 

4. Spooky loaned $24,000 to Witch Company signing a long-term note receivable. 

5. Spooky declared and paid dividends of $32,000. Net income was $420,000. 

What is Spooky Company’s net cash flow from investing activities?