The following data are available for Alamo Corporation. $$\begin{array} { l r }
\text { Sale of land } & \$ 225,000 \
\text { Sale of equipment } & \$ 130,000 \
\text { Issuance of common stock } & 140,000 \
\text { Purchase of equipment } & 70,000 \
\text { Payment of cash dividends } & 120,000
\end{array}$$ Net cash provided by investing activities is:
A) $285000.
B) $260000.
C) $305000.
D) $425000.

Question

The following data are available for Alamo Corporation. $$\begin{array} { l r } 
\text { Sale of land } & \$ 225,000 \
\text { Sale of equipment } & \$ 130,000 \
\text { Issuance of common stock } & 140,000 \
\text { Purchase of equipment } & 70,000 \
\text { Payment of cash dividends } & 120,000
\end{array}$$ Net cash provided by investing activities is:
A) $285000.
B) $260000.
C) $305000.
D) $425000.

Quizplus · Accepted Answer

Net cash provided by investing activities is calculated by subtracting cash outflows from cash inflows related to investments. Cash inflows include the sale of land ($225,000) and sale of equipment ($130,000), totaling $355,000. Cash outflows include the purchase of equipment ($70,000). Therefore, net cash provided by investing activities is $355,000 - $70,000 = $285,000.

The Following Data Are Available for Alamo Corporation Net Cash Provided by Investing Activities Is: A) $285000

The Following Data Are Available for Alamo Corporation Net Cash Provided by Investing Activities Is:
A) $285000