In the Freyfogle Company, land decreased $75,000 because of a cash sale for $75,000, the equipment account increased $20,000 as a result of a cash purchase, and Bonds Payable increased $70,000 from an issuance for cash at face value. The net cash provided by investing activities is
A) $75,000.
B) $125,000.
C) $55,000.
D) $50,000.

Question

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 land sale is $75,000, and the cash outflow for the equipment purchase is $20,000. Therefore, the net cash provided by investing activities is $75,000 - $20,000 = $55,000.

In the Freyfogle Company, Land Decreased $75,000 Because of a Cash