Answer:
d. $285,000
Explanation:
All the cash flows related to the fixed asset is called cash flows from the investing activities. Cash inflows from the sale fixed asset and cash outflows from the purchase of fixed assets are included in it.
Cash Flow from Investing Activities
Cash Inflows
Sale of Land $225,000
Sale of Equipment $130,000
Total Cash inflows $355,000
Cash out flows
Purchase of Vehicle ($70,000)
Net Cash Flows $285,000
Other Cash flows are from non-investing activities.
Answer:
Option D,$285,000 is the correct one
Explanation:
The net cash provided by investing activities can be computed thus:
Sale of land $225,000
Sale of equipment $130,000
Purchase of vehicle ($70,000)
Net cash provided $285,000
The issuance of common stock with proceeds of $140,000 is a financing activity as well as payment of dividends of $120,000.
The only items relating to investing activities are the ones highlighted in the computation above
Hence,the correct option is D,$285,000
