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14 September, 15:07

Riverbed Corporation had the following activities in 2020. 1. Sale of land $186,000 4. Purchase of equipment $428,000 2. Purchase of inventory $923,000 5. Issuance of common stock $332,000 3. Purchase of treasury stock $68,000 6. Purchase of available-for-sale debt securities $64,000 Compute the amount Riverbed should report as net cash provided (used) by investing activities in its 2020 statement of cash flows.

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  1. 14 September, 17:49
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    net cash flow used $306,000

    Explanation:

    The cash flow statements show the activities of the entity in relation to cash movement under 3 groups namely; Operating, Investing and Financing activities.

    1. Sale of land $186,000 - Investing

    4. Purchase of equipment $428,000 - Investing

    2. Purchase of inventory $923,000 - Operating

    5. Issuance of common stock $332,000 - Financing

    3. Purchase of treasury stock $68,000 - Financing

    6. Purchase of available-for-sale debt securities 64,000 - Investing

    Net cash provided (used) by investing activities in its 2020 statement of cash flows

    = $186,000 - $428,000 - $64,000

    = - $306,000

    This is a net cash flow used $306,000
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