Zoum Corporation had the following transactions during 2014: 1. Issued $125,000

ID: 2381134 • Letter: Z

Question

Zoum Corporation had the following transactions during 2014:

1. Issued $125,000 of par value common stock for cash.

2. Recorded and paid wages expense of $60,000.

3. Acquired land by issuing common stock of par value $50,000.

4. Declared and paid a cash dividend of $10,000.

5. Sold a long-term investment (cost $3,000) for cash of $3,000.

6. Recorded cash sales of $400,000.

7. Bought inventory for cash of $160,000.

8. Acquired an investment in Zynga stock for cash of $21,000.

9. Converted bonds payable to common stock in the amount of $500,000.

10. Repaid a 6 year note payable in the amount of $220,000.

What is the net cash provided by investing activities?

Answer

$432,000.

$212,000.

($18,000).

($68,000).

$432,000.

$212,000.

($18,000).

($68,000).

Explanation / Answer

PARTICULARS

AMOUNT

1] IT IS A PART OF FINANCING ACTIVITY

NIL

2] IT IS A PART OF OPERATING ACTIVITY

NIL

3]NO CASHFLOW INVOLVED AS COMMON STOCK IS ISSUED

NIL

4]IT IS A PART OF FINANCING ACTIVITY

NIL

5] Sold a long-term investment

3000

6]IT IS A PART OF OPERATING ACTIVITY

NIL

7]IT IS A PART OF OPERATING ACTIVITY

NIL

8] cquired an investment in Zynga stock for cash

(21000)

9] IT IS A PART OF FINANCING ACTIVITY

NIL

10]IT IS A PART OF OPERATING ACTIVITY

NIL

NET CASH OUTFLOW FROM INVESTING ACTIVITIES

(18000)

ANSWER:- OPTION-C (18000)