The following accounts and corresponding balances were drawn from Teva Company's 2017 and 2016 year-end balance sheets:
Account Title 2017 2016
Investment securities............. $102,000........... $110,000
Machinery.......................... 480,000.............. 465,000
Land................................ 75,000................ 95,000
Other information drawn from the accounting records:
1. Teva incurred a $3,000 loss on the sale of investment securities during 2017.
2. Old machinery with a book value of $8,000 (cost of $34,000 minus accumulated depreciation of $26,000) was sold. The income statement showed a gain on the sale of machinery of $7,500.
3. Teva incurred a loss of $4,000 on the sale of land in 2017.
Required
a. Compute the amount of cash flow associated with the sale of investment securities.
b. Compute the amount of cash flow associated with the purchase of machinery.
c. Compute the amount of cash flow associated with the sale of machinery.
d. Compute the amount of cash flow associated with the sale of land.
e. Prepare the investing activities section of the statement of cash flows.