In Jackson Jones Company, land decreased $180,000 because of a cash sale for $180,000, the equipment account increased $60,000 as a result of a cash purchase, and Bonds Payable increased $200,000 from issuance for cash at face value. The net cash provided by investing activities is

Question

Quizplus · Accepted Answer

The net cash provided by investing activities is calculated by considering cash inflows and outflows from the sale and purchase of long-term assets. The cash inflow from the sale of land is $180,000, and the cash outflow for the purchase of equipment is $60,000. Therefore, the net cash provided by investing activities is $180,000 - $60,000 = $120,000. The issuance of bonds is a financing activity, not an investing activity.

In Jackson Jones Company, Land Decreased $180,000 Because of a Cash