Investing Cash Flows Rigor Company reported the following net cash flow from investing activities in its cash flow statement:

a. If Rigor Company is expanding, would the cash flows from investing activities be expected to be positive or negative? Explain why.

b. Does Rigor Company appear to be expanding or contracting its operations? How do you know?

c. Is it possible to determine if a gain or loss was recorded on the sale of equipment by looking at the cash flow statement? Where would this amount be disclosed?

d. Does the $40,000 reported from the sale of equipment represent the cash received or the carrying value of the equipment at the time of sale?

e. In light of Rigor’s cash flows from investing activities, would you expect Rigor to be generating cash flows from financing activities? Explain.

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Sale of equipment Sale of land Purchase of Starback Corporation bonds Cash used in investing activities $ 40,000 160,000 (350,000) $(150,000)