A corporation received $130,000 in cash from the sale of a building and paid $68,000 in cash for the purchase of some new machinery. As a result, the statement of cash flows would report:

Question

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The sale of a building (an asset) for $130,000 is an investing activity, and the purchase of machinery (also an asset) for $68,000 is also an investing activity. The net cash provided by investing activities is the cash inflow from the sale of the building ($130,000) minus the cash outflow for the purchase of the machinery ($68,000), which equals $62,000.

A Corporation Received $130,000 in Cash from the Sale of a Building