a)

Assuming all transactions are cash transactions

An increase in the balance in the Land account suggests a cash inflow occurred.

A decrease in the balance in the Marketable Securities account suggests a cash outflow occurred.

A decrease in the balance in the Manufacturing Equipment account suggests a cash inflow occurred.

An increase in the balance in the Office Furniture account suggests a cash inflow occurred.

b)

A review of Pueblo Companys balance sheet revealed a beginning balance in its Land account of $150,000. The ending balance in the account was $225,000. All transactions associated with the purchase or sale of land were cash transactions. Based on this information alone, Pueblo would show a

$75,000 cash outflow in the financing activities section of its statement of cash flows.

$225,000 cash outflow in the financing activities section of its statement of cash flows.

$225,000 cash outflow in the investing activities section of its statement of cash flows.

$75,000 cash outflow in the investing activities section of its statement of cash flows.