Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dristell Incorporated had the following activities during the year ( all transactions are for cash unless stated otherwise ) : a . A building with

Dristell Incorporated had the following activities during the year (all transactions are for cash unless stated otherwise):
a. A building with a book value of $400,000 was sold for $500,000.
b. Additional common stock was issued for $160,000.
c. Dristell purchased its own common stock as treasury stock at a cost of $75,000.
d. Land was acquired by issuing a 6%,10-year, $750,000 note payable to the seller.
e. A dividend of $40,000 was paid to shareholders.
f. An investment in Fleet Corporation's common stock was made for $120,000.
g. New equipment was purchased for $65,000.
h. A $90,000 note payable issued three years ago was paid in full.
i. A loan for $100,000 was made to one of Dristell's suppliers. The supplier plans to repay Dristell this amount plus 10% interest within 18 months.
Required:
Calculate net cash flows from investing activities. (Cash outflows should be indicated with a minus sign.)
\table[[DRISTELL INCORPORATED],[Statement of Cash Flows (partial)],[For the Year Ended December 31,2024],[Cash flows from investing activities:],[Investment in Fleet's common stock]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

How should a consultant be selected?

Answered: 1 week ago

Question

Why is a consulting contract needed?

Answered: 1 week ago