Use the following information for questions 115 and 116.
Peavy Corp.'s transactions for the year ended December 31, 2015 included the following:
$\bullet$Acquired 50% of Gant Corp.'s common stock for $200,000 cash which was borrowed from a bank.
$\bullet$Issued 5,000 shares of its preferred stock for land having a fair value of $320,000.
$\bullet$Issued 500 of its 11% debenture bonds, due 2020, for $392,000 cash.
$\bullet$Purchased a patent for $220,000 cash.
$\bullet$Paid $120,000 toward a bank loan.
$\bullet$Sold available-for-sale securities for $796,000.
$\bullet$Had a net increase in returnable customer deposits (long-term) of $88,000.
-Peavy's net cash provided by investing activities for 2015 was
A) $276,000.
B) $376,000.
C) $576,000.
D) $596,000.

Question

Quizplus · Accepted Answer

Investing activities include the acquisition and disposal of long-term assets and other investments not included in cash equivalents. Here, the cash flows related to investing activities are: - Acquisition of Gant Corp.'s stock (-$200,000), purchase of a patent (-$220,000), and sale of available-for-sale securities (+$796,000). The net cash provided by investing activities is thus $796,000 - $200,000 - $220,000 = $376,000.

Use the Following Information for Questions 115 and 116 ∙\bullet∙ Acquired 50% of Gant Corp

Use the Following Information for Questions 115 and 116 $\bullet$ Acquired 50% of Gant Corp