Jean’s Vegetable Market had the following transactions during 2017: 1. Issued $50,000 of par value common...

Jean’s Vegetable Market had the following transactions during 2017: 1. Issued $50,000 of par value common stock for cash. 2. Repaid a 6-year note payable in the amount of $22,000. 3. Acquired land by issuing common stock of par value $100,000. 4. Declared and paid a cash dividend of $2,000. 5. Sold a long-term investment (cost $3,000) for cash of $8,000. 6. Acquired an investment in IBM stock for cash of $15,000. What is the net cash provided used by investing activities? Question 17 options: $15,000 $33,000 ($7,000) $8,000

Expert Solution

	Classification of each Transaction:	Amount	Effect on cash	Activity
1	Issued $50,000 of par value common stock for cash.	$50,000	Cash inflow	Financing
2	Repaid a 6-year note payable in the amount of $22,000	(22,000)	Cash outflow	Financing
3	Acquired land by issuing common stock of par value $100,000.	-	Non cash transaction
4	Declared and paid a cash dividend of $2,000.	(2,000)	Cash outflow	Financing
5	Sold a long-term investment (cost $3,000) for cash of $8,000.	8,000	Cash inflow	Investing
6	Acquired an investment in IBM stock for cash of $15,000.	($15,000)	Cash outflow	Investing

	Net cash provided/ used by investing activities
	Sold a long-term investment (cost $3,000) for cash of $8,000.	8,000
	Acquired an investment in IBM stock for cash of $15,000.	$(15,000)
	Net cash used by investing activities	($7,000)

	Correct answer is ($7,000)

ekkarill92 answered 1 year ago

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