Watley Surf Shop provided the following information for the current year: $$\begin{array} { l r }
\text { Proceeds from sale of equipment } & \$ 120,000 \
\text { Dividends paid to stockholders } & 16,000 \
\text { Purchase of inventories on account } & 92,000 \
\text { Borrowing a long-term loan } & 60,000 \
\text { Loan principal payments made } & 14,000 \
\text { Interest paid on loan payments } & 1,000 \
\text { Purchase of land for cash } & 65,000 \
\text { Payment for inventory previously acquired on account } & 85,000 \
\text { Cash collected from customers } & 450,000
\end{array}$$ How much is the net cash provided/(used) by investing activities during the year?

Question

Watley Surf Shop provided the following information for the current year: $$\begin{array} { l r } 
\text { Proceeds from sale of equipment } & \$ 120,000 \
\text { Dividends paid to stockholders } & 16,000 \
\text { Purchase of inventories on account } & 92,000 \
\text { Borrowing a long-term loan } & 60,000 \
\text { Loan principal payments made } & 14,000 \
\text { Interest paid on loan payments } & 1,000 \
\text { Purchase of land for cash } & 65,000 \
\text { Payment for inventory previously acquired on account } & 85,000 \
\text { Cash collected from customers } & 450,000
\end{array}$$ How much is the net cash provided/(used) by investing activities during the year?

Quizplus · Accepted Answer

Investing activities include the purchase of land for cash and the borrowing of a long-term loan. The purchase of land for cash used $65,000, and the borrowing of a long-term loan provided $60,000. Therefore, the net cash provided by investing activities is $60,000 - $65,000 = $55,000.

Watley Surf Shop Provided the Following Information for the Current