Jean's Vegetable Market had the following transactions during 2017:
1) Issued $50,000 of par value common stock for cash.
2) Repaid a 6 year note payable in the amount of $22,000.
3) Acquired land by issuing common stock of par value $100,000.
4) Declared and paid a cash dividend of $2,000.
5) Sold a long-term investment (cost $3,000) for cash of $8,000.
6) Acquired an investment in IBM stock for cash of $15,000.
What is the net cash provided used by investing activities?

Question

Quizplus · Accepted Answer

Investing activities include the acquisition and disposition of long-term assets and investments. In this scenario, the only cash outflow related to investing activities is the acquisition of the IBM stock for $15,000. The sale of the long-term investment for $8,000 is a cash inflow but it is not related to investing activities since it is not the sale of a long-term asset or investment. Therefore, the net cash provided used by investing activities is ($15,000).

Jean's Vegetable Market Had the Following Transactions During 2017