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?