Question

Mary Andrews, Inc. had the following transactions: Cash proceeds on sale of land Cash proceeds on sale of equipment Purchase of treasury stock with cash Purchase of equipment with cash Issuance of common stock for cash $450,000 140,000 48,000 47,000 70,000 On a statement of cash flows prepared under the indirect method, Net cash provided by investing activities is: O A. $543,000. O B. $495,000. O c. $590,000 OD. $565,000.

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Answer #1

A. $543,000

Net cash provided by investing activities = Cash proceeds on sale of land + Cash proceeds on sale of equipment - Purchase of equipment with cash = $450,000 + $140,000 - $47,000 = $543,000

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