Martinez Corporation engaged in the following cash transactions during 2017Sale of land and building. $191,000Purchase of treasury stock. 40,000Purchase of land. 37,000Payment of cash dividend 95,000Purchase of equipment. 53,000Issuance of common stock. 147,000Retirement of bonds 100,000Compute the net cash provided (used) by investing activities

Respuesta :

Answer:

$191,000  Sale of land and building.

-$37,000 Purchase of land.

-$53,000 Purchase of equipment.

$101,000  

Explanation:

The following activities have not been included in the above computation because these are not investing activities.

Financing Activity  Purchase of treasury stock.  

Financing Activity  Payment of cash dividend  

Financing Activity  Issuance of common stock  

Financing Activity  Retirement of bonds  

The cash flow from investing activities contains the changes in the cash flow from investment gains or losses  and for any investment in or sales of fixed assets, it represents the cash used  in the purchase of non-current assets–or long-term assets– that will deliver value in the future.  

It's an important statement specially in heavy industries which require large investments in fixed assets.  

The results can be negative or positive because it depends if the compnay bought or sold more assets during the period.