In Preparing Its Cash Flow Statement for the Year Ended

question 98

Multiple Choice

In preparing its cash flow statement for the year ended December 31, 2018, Red Co. gathered the following data: $\begin{array}{lll}\text {Gain on sale of land }&\$12,000\\\text {Proceeds from sale of land }&20,000\\\text {Purchase of Blue, Inc., bonds (facevalue \( \$ 200,000 \) ) }&360,000\\\text { Amortization of bond discount}&4,000\\\text {Cash dividends declared }&90,000\\\text { Cash dividends paid}&76,000\\\text { Proceeds from sales of Red Co. common stock}&150,000\\\end{array}$
In its December 31, 2018, statement of cash flows, what amount should Red report as net cash outflows from investing activities?

• A) $340,000.
• B) $352,000.
• C) $376,000.
• D) $388,000.

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