On January 1, Year 1, Shelton Company had a balance of $260,500 in its Land account. During Year 1, Shelton sold land that had cost $91,500 for $149,000 cash. The balance in the Land account on December 31, Year 1, was $283,500. Required a. Determine the cash outflow for the purchase of land during Year 1.

The comparative balance sheets and an income statement for Raceway Corporation follow:

Balance Sheets As of December 31
	Year 2				Year 1
Assets
Cash	$	69,599			$	38,220
Accounts receivable		28,350				20,790
Merchandise inventory		154,838				170,320
Prepaid rent		2,415				4,830
Equipment		251,530				289,290
Accumulated depreciation		(147,270	)			(238,990	)
Land		187,980				75,980
Total assets	$	547,442			$	360,440
Liabilities
Accounts payable (inventory)	$	63,333				71,840
Salaries payable		30,310				25,980
Stockholders equity
Common stock, $50 par value		244,000				199,000
Retained earnings		209,799				63,620
Total liabilities and equity	$	547,442			$	360,440

Income Statement For the Year Ended December 31, Year 2
Sales	$	1,500,000
Cost of goods sold		(797,201	)
Gross profit		702,799
Operating expenses
Depreciation expense		(23,040	)
Rent expense		(21,840	)
Salaries expense		(256,300	)
Other operating expenses		(255,440	)
Net income	$	146,179

Other Information

1. Purchased land for $112,000.
2. Purchased new equipment for $95,800.
3. Sold old equipment that cost $133,560 with accumulated depreciation of $114,760 for $18,800 cash.
4. Issued common stock for $45,000.

Required Prepare the statement of cash flows for Year 2 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

b. Prepare the investing activities section of the Year 1 statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)