Problem: A Company received $50,000 in cash when it sold a building and paid $90,000 in cash when it purchased some new machinery. As a result, the statement of cash flows would report a) $40,000 as the net cash used in financing activities. b) $40,000 as the net cash provided by investing activities. c) $40,000 as the net cash used in investing activities. d) $40,000 as the net cash provided by financing activities.

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Problem Details

A Company received $50,000 in cash when it sold a building and paid $90,000 in cash when it purchased some new machinery. As a result, the statement of cash flows would report

a) $40,000 as the net cash used in financing activities.

b) $40,000 as the net cash provided by investing activities.

c) $40,000 as the net cash used in investing activities.

d) $40,000 as the net cash provided by financing activities.

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