Use the Following Company Information to Calculate Net Cash Provided

question 72

Essay

Use the following company information to calculate net cash provided or used by investing activities:
(a) Equipment with a book value of $185,000 and an original cost of $300,000 was sold for $167,000.
(b) Paid $52,000 cash for a new delivery van.
(c) Purchased land costing $37,500, paid in cash.
(d) Purchased treasury stock for $61,000 cash.
(e) Long-term investments in stock with a cost of $46,500 are sold for $42,000 cash.

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Definitions:

Holding Cost

The expenses associated with storing unsold goods or materials, including warehousing, insurance, depreciation, and opportunity cost.

Shipping Cost

The expense incurred to transport goods from one location to another.

Factor Weighting Technique

A decision-making tool that assigns weights to various factors or criteria based on their importance, used to evaluate alternatives or make choices.

Subjectivity

The quality of being based on or influenced by personal feelings, tastes, or opinions rather than external facts or evidence.