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...

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...

Answer 1

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.

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...

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...