A Company Had the Following Cash Flows for the Year

question 93

Multiple Choice

A company had the following cash flows for the year:
(a) Purchased inventory,$60,000
(b) Sold goods to customers,$90,000
(c) Received loan from a local bank,$150,000
(d) Purchased land,$180,000
(e) Purchased treasury stock,$40,000
(f) Paid dividends,$10,000
(g) Sold delivery truck,$30,000
What amount would be reported for net investing cash flows on the Statement of Cash Flows?

• A)($150,000).
• B)($180,000).
• C)$30,000.

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Definitions:

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the party to be charged, to be enforceable.

Unilateral Contract

An agreement where only one party makes a promise to perform in exchange for an act by the other party, who is not legally obligated to act.

Completely Performed

Refers to a contractual obligation that has been fully executed or carried out by all parties involved to the terms agreed upon.

Oral Contract

An agreement made through spoken words rather than written documentation, which can be legally binding in some cases.