Question - Wofford Company provides the following information related to its investing and financing activities for the current year:
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Cash receipts:
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Sale of common stock
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$250,000
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Sale of equipment (at $34,000 loss)
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156,000
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Sale of land (at $50,000 gain)
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160,000
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Cash payments:
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Purchase of equipment
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$178,000
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Purchase of treasury stock
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45,000
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Retirement of debt
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36,500
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Dividends on preferred and common stock
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75,000
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a. Calculate the net amount of cash provided by or used for investing activities for the year.
b. What impact does equipment sold at a loss, and land sold at a gain have on your calculation?
Gain on sale of land is reflected in the cash payments figure.
Loss on sale of equipment is reflected in the cash payments figure.
Loss or gain will be reflected in neither cash receipts nor cash payments figure.
Gain on sale of land is reported separately from cash receipts figure.
Loss on sale of equipment is reported separately from cash receipts.
The amount of gain or loss is reflected in the cash receipts figure.