Calculate Cash Flows from Investing Activities The following transactions occurr

Question

Calculate Cash Flows from Investing Activities The following transactions occurred during the year:

A new warehouse was purchased for $111,600 cash.

The company's own common stock was purchased for $22,000.

An old warehouse costing $80,000 was sold for $46,900, resulting in a gain of $5,000.

The company purchased stock in Boston Beer Inc. for $7,800 cash.

Stock of Tazer Inc. was sold for $13,900, resulting in a gain of $7,800.

Required: Use this information to compute cash flows from investing activities. Use a negative number (for example, -1,000) to indicate a cash outflow.

Explanation / Answer

Cash flow from Investing activities             (58,600.00) Statement of Cash Flow Particulars Amount Total Amount Gain on sale of old warehouse                (5,000.00) Gain on sale of Investment in Tazer Inc                (7,800.00) Cash flow from operating activities           (12,800.00) Cash flow from Investing activities Purchase of Warehouse           (111,600.00) Sale of Old warehouse                46,900.00 Investment in Boston Beer                (7,800.00) Sale of Tazer Inc Stock                13,900.00 Cash flow from Investing activities           (58,600.00) Cash flow from Financing activities Purchase of Common Stock             (22,000.00) Cash flow from Financing activities           (22,000.00) Opening cash and cash equivalents Closing cash and cash equivalents

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