Question
Cash Flow from Investing Activities During 20X1, Craig Company had the following transactions: Purchased $200,600 of 10-year bonds issued by Makenzie Inc. Acquired land valued
Cash Flow from Investing Activities
During 20X1, Craig Company had the following transactions:
Purchased $200,600 of 10-year bonds issued by Makenzie Inc.
Acquired land valued at $69,700 in exchange for machinery.
Sold equipment with original cost of $539,400 for $330,600; accumulated depreciation taken on the equipment to the point of sale was $179,300.
Purchased new machinery for $119,900.
Purchased common stock in Lemmons Company for $54,600.
Required:
Question Content Area
1. Prepare the net cash from investing activities section of the statement of cash flows. (Note: Use a minus sign to indicate any decreases in cash or cash outflows.)
Cash flows from investing activities: | |
Land in exchange for machinery, Net cash from investing activities, or Purchase of bonds | |
Land in exchange for machinery, Net cash from investing activities, or Sale of equipment | |
Land in exchange for machinery, Net cash from investing activities, or Purchase of new machinery | |
Land in exchange for machinery, Net cash from investing activities, or Purchase of common stock | |
Net cash from investing activities, Purchase of bonds, or Sale of equipment | $ |
Noncash investing activity: | |
Land in exchange for machinery Purchase of common stock, or Sale of equipment | $- Select - |
Question Content Area
2. Usually, the net cash from investing activities is negative. How can Craig cover this negative cash flow? What other information would you like to have to make this decision? Complete the items below that outline a response to the questions posed above.
The negative cash flow from investing activities can be covered by using cash from
operating activities only, operating and financing activities, operations, or financing activities only
.
Some of the activities listed below would provide cash for investment. Select "Yes" or "No" for cash for investment activities.
Issuing bonds | YesNo |
Splitting common stock | YesNo |
Issuing common stock | YesNo |
Repurchasing common stock | YesNo |
Taking out mortgages | YesNo |
Declaring a dividend | YesNo |
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