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.)

Craig Company Statement of Cash Flows (Partial) Year Ending December 31, 20X1

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