During 20X1, Craig Company had the following transactions:

A.	Purchased $200,700 of 10-year bonds issued by Makenzie Inc.
B.	Acquired land valued at $69,200 in exchange for machinery.
C.	Sold equipment with original cost of $539,600 for $330,500; accumulated depreciation taken on the equipment to the point of sale was $179,900.
D.	Purchased new machinery for $120,500.
E.	Purchased common stock in Lemmons Company for $56,000.

Required:

1.

Prepare the net cash from investing activities section of the statement of cash flows.

.

CONCEPTUAL CONNECTION 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?

Refer to the list below for the exact wording of an amount description or label within your Statement of Cash Flows.

Amount Descriptions	Labels
Land in exchange for machinery	Cash flows from financing activities
Net cash from investing activities	Cash flows from investing activities
Purchase of bonds	Noncash investing activity
Purchase of common stock
Purchase of new machinery
Sale of equipment

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. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.)

2. Usually, the net cash from investing activities is negative. How 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 (financing activities, or operating activities or operating and financing activities or operations)

Craig Company Statement of Cash Flows (Partial) Year Ending December 31, 20X1 1(Label) 7(Label) Some of the activities listed below would provide cash for investment. Check all that apply. repurchasing common stock declaring a dividend taking out mortgages issuing common stock