Joan’s Vegetable Market had the following transactions during 2013:
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?

Question

Joan’s Vegetable Market had the following transactions during 2013:
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?

Quizplus · Accepted Answer

The net cash provided by investing activities is the sum of the cash inflows and outflows from investing activities. The cash inflows are from the sale of the long-term investment ($6,000) and the acquisition of the investment in IBM stock ($12,000). The cash outflows are from the acquisition of land by issuing common stock ($100,000). Therefore, the net cash provided by investing activities is $6,000 - $100,000 = ($6,000).

Joan’s Vegetable Market Had the Following Transactions During 2013