Help. My textbook is of no use. How do I compute this net cash provided? RCES Br

ID: 2539671 • Letter: H

Question

Help. My textbook is of no use. How do I compute this net cash provided?

RCES Brief Exercise 23-2 Indigo Corporation had the following activities in 2017. 1. Sale of land $192,000 2. Purchase of inventory $799,000 3. Purchase of treasury stock $71,000 6. Purchase of available-for-sale debt seaurities $61,000 4. Purchase of equipment $408,000 5. Issuance of common stock $312,000 Compute the amount Indioo should report as net cash provided (used) by investing activities in ts 2017 statement af with either a sign e.g. -15,000 or in parenthesis e-g. (15,000)) Net cash provided by investing activities Click if you would like to Show Work for this question: Open Show Work INK TO TEXT Question Atte

Explanation / Answer

So the answer is $277000

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Investing activities includes all those transaction which are made to acquire fixed asset, as well as when the asset is dispose the cash inflows generated from it.

It also includes purchase and sale of financial instruments for investment purpose.

So net cash flow from the investing activities will be as follows

Sale of land

192000

- Purchase of equipment

408000

-Purchase of available of sale debt securities

61000

Net cash flow

-277000

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