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Use the following information for question 15 The balance sheet data of Paxon Company at the end of 2004 and 2003 follow Cash Accounts receivable

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Use the following information for question 15 The balance sheet data of Paxon Company at the end of 2004 and 2003 follow Cash Accounts receivable (net) Merchandise inventory Prepaid expenses Buildings and equipment $ 125,000 S 175,000 300,000 225,000 350,000 225,000 50,000 125,000 450,000375,000 (90,000) (40,000) Land Totals 1,635,000 $1.285.000 340,000 275,000 90,000 Accounts payable Accrued expenses Notes payable-bank, long-term c Mortgage payable Common stock, $10 par Retained earnings (deficit) 60,000 200,000 150,000 ,045,000 795,000 40,000(75000) $1.635,000 $1.285,000 Land was acquired for $250,000 in exchange for common stock, par $250,000, during the year all equipment purchased was for cash. Equipment costing $25,000 was sold for $10,000; book value of the equipment was $2 Cash dividends of $50,000 were charged to retained earnings and paid during the year, the transfer of net income to retained earnings was the only other entry in the Retained Earnings account. In the statement of cash flows for the year ended December 31, 2004, for Paxon ss was reported as anordinary itemTnnetincome e The net cash provided (used) by investing activities was a. $65,000 b. $(100,000). c. $(340,000). d. $(90,000). 15. lyou should have COA $140,000; CIA ($90,000), CFA ($100,000)] 16. The following information on selected cash transactions for 2004 has been provided by Raymond Company Proceeds from sale of land $ 400,000 1,000,000 360,000 1,700,000 600,000 Proceeds from long-term borrowings Purchases of plant assets Purchases of inventories Proceeds from sale of Raymond common stock What is the cash provided (used) by investing activities for the year ended December 31 2004, as a result of the above information? a. $40,000 b. $640,000 c. $400,000. d. $2,000,000

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