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
Answered by
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**.
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**.
There are no human answers yet. A form for humans to post answers is coming very soon!