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Wainwright Corporation had the following activities in 2020. Sale of land for $120,000. Purchase of inventory for $645,000. Purchase of treasury stock for $52,000. Purchase of equipment for $315,000. Issuance of common stock for $620,000. Sale of available-for-sale debt securities for $85,000. Compute the amount Wainwright should report as net cash provided (used) by investing activities in its 2020 statement of cash flows.

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Answer:

net cash used by investing activities = $280,000

Explanation:

Cash flow from Investing Activities :

Proceeds from Sale of Land                                            $120,000

Purchase of Equipment                                                  ($315,000)

Proceeds from Sale of debt securities                           ($85,000)

Net Cash used by Investing activities                          ($280,000)

therefore,

Wainwright should report as net cash used by investing activities in its 2020 statement of cash flows of $280,000

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