in the buans company, land decreased $80,000 as a result of a cash sale for $80,000, the equipment account…
in the buans company, land decreased $80,000 as a result of a cash sale for $80,000, the equipment account increased $35,000 as a result of a cash purchase, and bonds payable increased $60,000 from a cash issuance at face value. the net cash provided by investing activities is\no $25,000.\no $80,000.\no $45,000.\no $165,000.
Answer
Explanation:
Step1: Identify cash - related investing activities
Cash purchase is a cash - out in investing activities and cash sale is a cash - in.
Step2: Calculate net cash from investing activities
Net cash from investing activities = Cash inflow from sale - Cash outflow from purchase. Here, cash inflow from land sale is $80,000 and cash outflow from purchase (not mentioned other than land sale, assume no other purchase in investing activities related to given info) is $80,000. So, Net cash provided by investing activities=$80,000 - $80,000 = $0.
Answer:
$0