Question 451 pts In the Freyfogle Company, land decreased $75,000 because of a cash sale for $75,000, the equipment account increased $20,000 as a result of a cash purchase, and Bonds Payable increased $70,000 from an issuance for cash at face value. The net cash provided by investing activities is

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Business

Gabriela Wolf

17 November, 03:13

Question 451 pts In the Freyfogle Company, land decreased $75,000 because of a cash sale for $75,000, the equipment account increased $20,000 as a result of a cash purchase, and Bonds Payable increased $70,000 from an issuance for cash at face value. The net cash provided by investing activities is

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Alissa Riley · Answer 1

Answer: $55,000

Explanation:

From the question, we are told that in the Freyfogle Company, land decreased $75,000 because of a cash sale for $75,000, and the equipment account increased $20,000 due to a cash purchase, while the bonds payable increased $70,000 from an issuance for cash at face value.

The net cash provided by investing activities shows the amount of money that has been spent for investment purposes at a specific period.

Sales of land = $75,000

Less: Equipment purchase = $20,000

Therefore, the net cash provided by investing activities will be:

= $75,000 - $20,000

= $55,000