In the Freyfogle Company, land decreased $90,000 because of a cash sale for $90,000, the equipment account increased $20,000 as a result of a cash purchase, and Bonds Payable increased $80,000 from an issuance for cash at face value. The net cash provided by investing activities is

Question

Quizplus · Accepted Answer

To calculate net cash provided by investing activities, we need to add the cash inflows from the sale of land ($90,000) and the cash outflow for the purchase of equipment (-$20,000), which gives a total of $70,000. The increase in Bonds Payable does not affect the net cash provided by investing activities since it is a financing activity, not an investing activity.

In the Freyfogle Company, Land Decreased $90,000 Because of a Cash