question 6 jeans organic produce market had the following transactions during 2022: 1. issued $50,000 of…

question 6 jeans organic produce market had the following transactions during 2022: 1. issued $50,000 of common stock at par for cash. 2. repaid a 6 - year note payable in the amount of $22,000. 3. acquired land by issuing common stock at par for $100,000. 4. declared and paid a cash dividend of $2,000. 5. sold a long - term investment (cost $3,000) for cash of $8,000. 6. acquired an investment in ibm stock for cash of $15,000. what is the net cash provided (used) by investing activities? $15,000 $8,000 $33,000 ($7,000)

question 6 jeans organic produce market had the following transactions during 2022: 1. issued $50,000 of common stock at par for cash. 2. repaid a 6 - year note payable in the amount of $22,000. 3. acquired land by issuing common stock at par for $100,000. 4. declared and paid a cash dividend of $2,000. 5. sold a long - term investment (cost $3,000) for cash of $8,000. 6. acquired an investment in ibm stock for cash of $15,000. what is the net cash provided (used) by investing activities? $15,000 $8,000 $33,000 ($7,000)

Answer

Answer:

$7,000

Explanation for reference (not part of output):

  1. Analyze each transaction for its impact on investing - cash flows:
    • Issuing common - stock for cash ($50,000) is a financing activity, not an investing activity.
    • Repaying a note payable ($22,000) is a financing activity.
    • Acquiring land by issuing common - stock ($100,000) is a non - cash investing and financing activity.
    • Declaring and paying a cash dividend ($2,000) is a financing activity.
    • Selling a long - term investment for cash ($8,000) is a cash inflow from investing activities.
    • Acquiring an investment in IBM stock for cash ($15,000) is a cash outflow from investing activities.
  2. Calculate the net cash provided (used) by investing activities:
    • Cash inflow from selling investment = $8,000
    • Cash outflow from buying investment = $15,000
    • Net cash from investing activities=$8,000 - $15,000=-$7,000. The negative sign indicates cash used.