Cash Flows from Investing Activities
Sorensen Company provides the following information related to its investing and financing activities for the current year:
Cash receipts: |
|
Sale of common stock | $250,000 |
Sale of equipment (at $34,000 loss) | 156,000 |
Sale of land (at $50,000 gain) | 160,000 |
Cash payments: |
|
Purchase of equipment | $178,000 |
Purchase of treasury stock | 45,000 |
Retirement of debt | 36,500 |
Dividends on preferred and common stock | 75,000 |
a. Calculate the net amount of cash provided by or used for investing activities for the year.
b. What impact, if any, do the following facts have on your calculation? ( 1 ) Equipment was sold at a $34,000 loss, and ( 2 ) land was sold at a $50,000 gain.
c. Briefly explain your decision to exclude any of the items listed above if they were not included in your calculation in part a.
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