The following information was drawn from the year-end balance sheets of Mass Trading Company:

The following is additional information regarding transactions that occurred during Year 2:
1. Investment securities that had cost $6,100 were sold. The Year 2 income statement contained a loss on the sale of investment securities of $1,400.
2. Equipment with a cost of $38,000 was purchased.
3. The income statement showed a gain on the sale of equipment of $8,000. On the date of sale, accumulated depreciation on the equipment sold amounted to $8,000.
4. A building that had originally cost $210,000 was demolished.
5. Land that had cost $30,000 was sold for $27,000.

Required
a. Determine the amount of cash flow for the purchase of investment securities during Year 2.
b. Determine the amount of cash flow from the sale of investment securities during Year 2.
c. Determine the cost of the equipment that was sold during Year 2.
d. Determine the amount of cash flow from the sale of equipment during Year 2.
e. Determine the amount of cash flow for the purchase of buildings during Year 2.
f. Determine the amount of cash flow for the purchase of land during Year 2.
g. Prepare the investing activities section of the Year 2 statement of cash flows.

Transcribed Image Text:

Account Title Investment securities Equipment Buildings Land Year 2 Year 1 $ 47,200 246,000 646,000 95,000 $ 42,400 218,000 720,000 72,000