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Use the Following Company Information to Calculate Its Net Cash

question 69

Essay

Use the following company information to calculate its net cash provided or used by investing activities:
(a) Equipment with a carrying amount of $125,000 and an original cost of $220,000 was sold at a gain of $22,000.
(b) Paid $49,000 cash for a new truck.
(c) Sold land costing $30,000 for $26,000 cash, realizing a $4,000 loss.
(d) Purchased treasury shares for $53,000 cash.
(e) Long-term investments in shares are sold for $41,000 cash, realizing a gain of $3,500.


Definitions:

Portfolio Risk

The degree of uncertainty of returns on a portfolio due to the possibility of changes in the value of its investments.

Well-diversified Portfolio

An investment portfolio constructed to spread risk across various asset classes and investment vehicles to minimize potential losses.

Risk Aversion

The reluctance of a person or entity to take risks.

Expected Returns

The projected return on an investment, taking into account both the probability and the impact of known risks.

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