On January 1,2014,,Steigel Company had a balance of $720,000 in its land accountLand account.During the year2014,Steigel sold land,which that had cost $240,000,for $440,000 cash.The balance in the land accountLand account on December 31,2014,was $980,000 on December 31.What Based on this information what is the net cash outflow from investing activities?

Question

Quizplus · Accepted Answer

Beginning balance of Land + Cash outflow to purchase land - Cash inflow from sale of land = Ending balance of Land
$720,000 + Cash outflow to purchase land - $240,000 = $980,000
Cash outflow to purchase land = $980,000 - $720,000 + $240,000 = $500,000
Net cash flow from investing activities = Cash inflow from sale of land - Cash outflow for purchase of land
Net cash flow from investing activities = $440,000 - $500,000 = ($60,000)

On January 1,2014,,Steigel Company Had a Balance of $720,000 in Its