A is corrent. Investing activities include cash flows involving assets other than operating items. The investing activities are| Purchased real estate | $(550,000) | | Sold available-for-sale investment securities | 500,000 | | Purchased mach. and equip. | (125,000) | | Net cash used in investing activities | $(175,000) |
The bank borrowing ($550,000), dividend payment ($600,000), issuance of stock ($250,000), and bank loan payment ($450,000) are financing activities. The reduction of accounts receivable ($100,000) and the increase in accounts payable ($200,000) are operating items.B is incorrect. Investing activities include cash flows involving assets other than operating items. The investing activities are| Purchased real estate | $(550,000) | | Sold available-for-sale investment securities | 500,000 | | Purchased mach. and equip. | (125,000) | | Net cash used in investing activities | $(175,000) |
The bank borrowing ($550,000), dividend payment ($600,000), issuance of stock ($250,000), and bank loan payment ($450,000) are financing activities. The reduction of accounts receivable ($100,000) and the increase in accounts payable ($200,000) are operating items.C is incorrect. Investing activities include cash flows involving assets other than operating items. The investing activities are| Purchased real estate | $(550,000) | | Sold available-for-sale investment securities | 500,000 | | Purchased mach. and equip. | (125,000) | | Net cash used in investing activities | $(175,000) |
The bank borrowing ($550,000), dividend payment ($600,000), issuance of stock ($250,000), and bank loan payment ($450,000) are financing activities. The reduction of accounts receivable ($100,000) and the increase in accounts payable ($200,000) are operating items.D is incorrect. Investing activities include cash flows involving assets other than operating items. The investing activities are| Purchased real estate | $(550,000) | | Sold available-for-sale investment securities | 500,000 | | Purchased mach. and equip. | (125,000) | | Net cash used in investing activities | $(175,000) |
The bank borrowing ($550,000), dividend payment ($600,000), issuance of stock ($250,000), and bank loan payment ($450,000) are financing activities. The reduction of accounts receivable ($100,000) and the increase in accounts payable ($200,000) are operating items. |
