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Wainwright Corporation had the following activities in 2017. 1. Sale of land $180,000. 2....

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Wainwright Corporation had the following activities in 2017.

1. Sale of land $180,000.

2. Purchase of inventory $845,000.

3. Purchase of treasury stock $72,000.

4. Purchase of equipment $415,000.

5. Issuance of common stock $320,000.

6. Purchase of available-for-sale debt securities $59,000.

Compute the amount Wainwright should report as net cash provided (used) by investing activities in its 2017 statement of cash flows.

Calculate Net Cash Provided (Used) by Investing Activities

The Statement of Cash Flows has 3 sections: operating cash flows; financing cash flows; and investing cash flows. The investing cash flows section of the Statement of Cash Flows details the changes in each of the long-term asset balances from one period to another except for depreciation and amortization expense, which are reported in the operating cash flows section. Long-term assets include long-lived assets like land, building, and equipment; intangible assets; and any long-term types of investments.

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Compute the amount Wainwright should report as net cash provided (used) by investing activities in its 2017 statement of cash flows.


1. Sale of...

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The Statement of Cash Flows: Purpose, Format & Examples

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Chapter 2 / Lesson 4
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Learn about statements of cash flows. Discover what a cash flow statement is and see the indirect method statement of cash flows, net cash flows, and other examples.


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