Question

Using the indirect method to prepare the statement of cash​ flows, Smith Company sold equipment for $ 42700 ​cash, sold land for $ 8 500 ​cash, and purchased another piece of equipment for $ 28400. The net cash flows provided by​ /used for investing activities is...

Answers

GPT-4o mini
To calculate the net cash flows provided by/used for investing activities using the indirect method, you will sum up the cash inflows and outflows from investing activities.

In this case, we have:

**Cash inflows:**
- Sale of equipment: $42,700
- Sale of land: $8,500

Total cash inflows = $42,700 + $8,500 = **$51,200**

**Cash outflows:**
- Purchase of equipment: $28,400

Total cash outflows = **$28,400**

Now, we can calculate the net cash flows from investing activities:

\[
\text{Net cash flows from investing activities} = \text{Total cash inflows} - \text{Total cash outflows}
\]

\[
\text{Net cash flows from investing activities} = 51,200 - 28,400 = 22,800
\]

Therefore, the net cash flows provided by investing activities is **$22,800**.

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