40. Use the following to determine the cash flows provided by or used in operating activities:

• Net income is $150,000, including a gain on the sale of building of $25,000.
• Equipment costing was sold at book value for $30,000
• The company purchased land for $25,000

1. net cash provided, $150,000
2. net cash used, $120,000
3. net cash provided, $145,000
4. net cash provided, $125,000
5. None of the above

41. Use the following to determine the cash flows provided by or used in investing activities:

• Net income is $150,000, including a gain on the sale of building of $25,000.
• Equipment was sold at book value for $30,000
• The company purchased land for $25,000

1. net cash provided, $30,000
2. net cash used, $25,000
3. net cash provided, $5,000
4. net cash used, $5,000
5. None of the above

42. Use the following to determine the cash flows provided by or used in financing activities:

• Net income is $150,000, including a gain on the sale of building of $25,000.
• Equipment was sold at book value for $30,000
• The company purchased land for $25,000

1. net cash provided, $105,000
2. net cash used, $105,000
3. net cash provided, $5,000
4. net cash used, $5,000
5. None of the above