preparing its cash flow statement for the year ended December 31, 2013, Red Co.

ID: 2481076 • Letter: P

Question

preparing its cash flow statement for the year ended December 31, 2013, Red Co. gathered the following data:

Gain on sale of land $ 12,900

Proceeds from sale of land 24,500

Purchase of Blue, Inc. bonds (face value $214,000) 359,000 Amortization of bond discount 4,700

Cash dividends declared 97,000

Cash dividends paid 75,000

Proceeds from sales of common stock 160,000

In its December 31, 2013, statement of cash flows, what amount should Red report as net cash outflows from investing activities? A_$334,500.

B_$321,600.

C_$189,500.

D_$383,500.

Answer:

Cash outflow from investing activities:

Less: Purchase of blue, inc. bonds = $359000

Add: proceeds from sales of land = $24500

Net cash outflow from investing activities = - $334500

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.