Land Transactions on the Statement of Cash Flows Veteran Corporation purchased l

Question

Land Transactions on the Statement of Cash Flows Veteran Corporation purchased land for $463,000. Later in the year, the company sold a different piece of land with a book value of $255,000 for $224,000 How are the effects of these transactions reported on the statement of cash flows assuming the indirect method is used? Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank. Transactions Action Amount Gain or loss on sale of land Cash received from sale of land Cash paid for purchase of land Action Part of cash flows from financing activities Part of cash flows from investing activities Added to net income Deducted from net income No effect

Explanation / Answer

Transactions Action Amount Gain or loss on sale of land Added to net income $31,000 Cash received from sale of land Part of cash flows from investing activities $224,000 Cash paid for purchase of land Part of cash flows from investing activities -$463,000

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