The following data are available for Alamo Corporation. $$\begin{array} { l r }
\text { Sale of land } & \$ 225,000 \
\text { Sale of equipment } & \$ 130,000 \
\text { Issuance of common stock } & 140,000 \
\text { Purchase of equipment } & 70,000 \
\text { Payment of cash dividends } & 120,000
\end{array}$$ Net cash provided by investing activities is:
A) $285,000.
B) $260,000.
C) $305,000.
D) $425,000.

Question

The following data are available for Alamo Corporation. $$\begin{array} { l r } 
\text { Sale of land } & \$ 225,000 \
\text { Sale of equipment } & \$ 130,000 \
\text { Issuance of common stock } & 140,000 \
\text { Purchase of equipment } & 70,000 \
\text { Payment of cash dividends } & 120,000
\end{array}$$ Net cash provided by investing activities is:
A) $285,000.
B) $260,000.
C) $305,000.
D) $425,000.

Quizplus · Accepted Answer

Net cash provided by investing activities is calculated by adding cash inflows from the sale of land and equipment and subtracting cash outflows for the purchase of equipment. Thus, $225,000 (sale of land) + $130,000 (sale of equipment) - $70,000 (purchase of equipment) = $285,000.

The Following Data Are Available for Alamo Corporation Net Cash Provided by Investing Activities Is: A) $285,000

The Following Data Are Available for Alamo Corporation Net Cash Provided by Investing Activities Is:
A) $285,000