In the Buans Company land decreased $80000 because of a cash sale for $80000 the equipment account increased $35000 as a result of a cash purchase and Bonds Payable increased $60000 from an issuance for cash at face value. The net cash provided by investing activities is

Question

Quizplus · Accepted Answer

The net cash provided by investing activities is calculated by considering the cash inflows and outflows from investing activities. In this case, the sale of land for $80,000 is a cash inflow, and the purchase of equipment for $35,000 is a cash outflow. Therefore, the net cash provided by investing activities is $80,000 (inflow) - $35,000 (outflow) = $45,000. The issuance of bonds payable is a financing activity, not an investing activity, and thus is not included in this calculation.

In the Buans Company Land Decreased $80000 Because of a Cash