Cash Flows from Investing Activities and Noncash Transactions During 2014, Fargo

Question

Cash Flows from Investing Activities and Noncash Transactions

During 2014, Fargo Company purchased land for $375,000. It paid $125,000 in cash and signed a $250,000 mortgage for the rest. The company also sold for $95,000 cash a building that originally cost $90,000, on which it had $70,000 of accumulated depreciation, making a gain of $75,000.

Prepare the cash flows from investing activities section and the schedule of noncash investing and financing transactions of the statement of cash flows. Use the minus sign to indicate cash outflow or a decrease in cash.

Explanation / Answer

Purchase Land -375000

Building Sold 95000

cash Flow from investing activities -280000

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