In 2017, Forever Young, Inc. sold land for $120,000 cash, purchased equipment for $16,000 cash and issued bonds for $120,000 cash. The Net cash provided by investing activities is:

Question

Quizplus · Accepted Answer

The net cash provided by investing activities is calculated by subtracting cash outflows from cash inflows related to investments. Cash inflow from selling land is $120,000, and cash outflow for purchasing equipment is $16,000. Therefore, the net cash provided by investing activities is $120,000 - $16,000 = $104,000. The issuance of bonds is a financing activity, not an investing activity.