In Gentry Company, land decreased $140,000 because of a cash sale for $140,000, the equipment account increased $40,000 as a result of a cash purchase, and Bonds Payable increased $130,000 from issuance for cash at face value. The net cash provided by investing activities is

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Quizplus · Accepted Answer

The net cash provided by investing activities is calculated by considering cash inflows and outflows related to investments. The cash inflow from the sale of land is $140,000, and the cash outflow for the purchase of equipment is $40,000. Therefore, the net cash provided by investing activities is $140,000 - $40,000 = $100,000. The issuance of bonds is a financing activity, not an investing activity.

In Gentry Company, Land Decreased $140,000 Because of a Cash