In 2015,Forever Young,Inc.sold land for $100,000 cash,purchased equipment for $20,000 cash and issued bonds for $100,000 cash.The Net Cash Provided by Investing Activities is:

Question

Quizplus · Accepted Answer

Net Cash Provided by Investing Activities can be calculated as:
Net Cash Provided by Investing Activities = Cash Outflows for Investing Activities - Cash Inflows from Investing Activities

Cash inflows:
- The cash received from the sale of land is $100,000.

Cash outflows:
- The purchase of equipment is a cash outflow of $20,000.
- The issuance of bonds is a financing activity and not an investing activity. Therefore, it is not included in the calculation of Net Cash Provided by Investing Activities.

Net Cash Provided by Investing Activities = -$20,000 (cash outflows) + $100,000 (cash inflows) = $80,000

Therefore, the correct choice is A) $80,000.