Question

Wilma’s Vegetable Market had the following transactions during 2012:

1.   Issued $25,000 of par value common stock for cash.

2.   Recorded and paid wages expense of $10,000.

3.   Acquired land by issuing common stock of par value $50,000.

4.   Declared and paid a cash dividend of $1,000.

5.   Sold a long-term investment (cost $3,000) for cash of $3,000.

6.   Recorded cash sales of $20,000.

7.   Bought inventory for cash of $2,000.

8.   Acquired an investment in IBM stock for cash of $6,000.

9.   Converted bonds payable to common stock in the amount of $10,000.

10. Repaid a 6 year note payable in the amount of $11,000.

What is the net cash provided by (used in) investing activities?

Answer 1

1.   Issued $25,000 of par value common stock for cash. - FINANCING ACTIVITY

2.   Recorded and paid wages expense of $10,000. - OPERATING ACTIVITY

3.   Acquired land by issuing common stock of par value $50,000. - NO NET CASH FLOW

4.   Declared and paid a cash dividend of $1,000. - FINANCING ACTIVITY

5.   Sold a long-term investment (cost $3,000) for cash of $3,000. - INVESTING ACTIVITY

6.   Recorded cash sales of $20,000. - OPERATING ACTIVITY

7.   Bought inventory for cash of $2,000. - OPERATING ACTIVITY

8.   Acquired an investment in IBM stock for cash of $6,000. - INVESTING ACTIVITY

9.   Converted bonds payable to common stock in the amount of $10,000. - NO NET CASH FLOW

10. Repaid a 6 year note payable in the amount of $11,000. - FINANCING ACTIVITY

Cash received from sale of long term investment	$3,000
Cash paid for investment in IBM stock	($6,000)
Net cash used in investing activities	($3,000)

The net cash used in investing activities - $3,000