Zoum Corporation had the following transactions during 2014:
1) Issued $125,000 of par value common stock for cash.
2) Recorded and paid wages expense of $60,000.
3) Acquired land by issuing common stock of par value $50,000.
4) Declared and paid a cash dividend of $10,000.
5) Sold a long-term investment (cost $3,000) for cash of $3,000.
6) Recorded cash sales of $400,000.
7) Bought inventory for cash of $160,000.
8) Acquired an investment in Zynga stock for cash of $21,000.
9) Converted bonds payable to common stock in the amount of $500,000.
10) Repaid a 6 year note payable in the amount of $220,000.
What is the net cash provided by investing activities?
A) $432,000.
B) $212,000
C) ($18,000).
D) ($68,000).

Question

Quizplus · Accepted Answer

Investing activities include the sale and purchase of long-term investments and assets. The sale of a long-term investment provided $3,000, and the purchase of Zynga stock used $21,000, resulting in a net cash flow of ($18,000) from investing activities.

Zoum Corporation Had the Following Transactions During 2014