Land Transactions on the Statement of Cash Flows

Veteran Corporation purchased land for $$207,000.$ Later in the year, the company sold a different piece of land with a book value of $$106,000$ for $$118,000.$

How are the effects of these transactions reported on the statement of cash flows? Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select $"$No effect" from the drop down menu and leave the amount box blank.

Transactions

Action

Gain or loss on sale of land

Added to net income $x$

Cash received from sale of land

Part of cash flows from investing activities

Cash paid for purchase of land

Part of cash flows used for investing activities

Feedback

Check My Work

Property, plant, and equipment are considered noncurrent assets. Recall the definitions of each section of the statement of cash flows. What type of an affect would a gain or loss have on the statement of cash flows?

Previous

Next

All work saved.