In preparing its cash flow statement for the year ended December 31, 2018, Red Co. gathered the following data: $\begin{array}{lll}
\text {Gain on sale of land }&\$12,000\
\text {Proceeds from sale of land }&20,000\
\text {Purchase of Blue, Inc., bonds (facevalue $ \$ 200,000 $ ) }&360,000\
\text { Amortization of bond discount}&4,000\
\text {Cash dividends declared }&90,000\
\text { Cash dividends paid}&76,000\
\text { Proceeds from sales of Red Co. common stock}&150,000\
\end{array}$
In its December 31, 2018, statement of cash flows, what amount should Red report as net cash outflows from investing activities?
A) $340,000.
B) $352,000.
C) $376,000.
D) $388,000.

Question

In preparing its cash flow statement for the year ended December 31, 2018, Red Co. gathered the following data: $\begin{array}{lll}
\text {Gain on sale of land }&\$12,000\
\text {Proceeds from sale of land }&20,000\
\text {Purchase of Blue, Inc., bonds (facevalue $ \$ 200,000 $ ) }&360,000\
\text { Amortization of bond discount}&4,000\
\text {Cash dividends declared }&90,000\
\text { Cash dividends paid}&76,000\
\text { Proceeds from sales of Red Co. common stock}&150,000\
\end{array}$
 In its December 31, 2018, statement of cash flows, what amount should Red report as net cash outflows from investing activities?
A) $340,000.
B) $352,000.
C) $376,000.
D) $388,000.

Quizplus · Accepted Answer

$20,000 - 360,000 = -$340,000

In Preparing Its Cash Flow Statement for the Year Ended