Joy Elle's Vegetable Market had the following transactions during 2010:
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 $63,000) for cash of $6,000.
6) Acquired an investment in IBM stock for cash of $12,000.
What is the net cash provided by investing activities?
A) $12,000
B) $32,000
C) ($6,000)
D) $6,000

Question

Quizplus · Accepted Answer

The net cash provided by investing activities is calculated by subtracting the cash outflows from the cash inflows. 
Cash inflows: 
- Sold a long-term investment for cash of $6,000 
- Acquired an investment in IBM stock for cash of $12,000 
Total cash inflows = $6,000 + $12,000 = $18,000

Cash outflows: 
- Acquired land by issuing common stock of par value $100,000 
Total cash outflows = $100,000

Net cash provided by investing activities = Cash inflows - Cash outflows 
= $18,000 - $100,000 
= ($82,000) 
Therefore, the correct choice is C ($6,000).

Joy Elle's Vegetable Market Had the Following Transactions During 2010