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The following accounts and corresponding balances were drawn from Drea Company’s Year 2 and Year 1 year-end balance sheets.  (See below). Other information drawn from the accounting records: Drea incurred a $1,500 loss on the sale of investment securities during Year 2. The only transaction related to land was a purchase of land in Year 2. Requirements: Calculate the amount of cash inflow or (outflow) related to the investments account for Drea, Year 2. Calculate the amount of cash inflow or (outflow) related to the Land account for Year 2. Based on the above, what is Drea's cash flow from investing activities for Year 2?

The following accounts and corresponding balances were drawn from Drea Company’s Year 2 and Year 1 year-end balance sheets.  (See below). Other information drawn from the accounting records: Drea incurred a $1,500 loss on the sale of investment securities during Year 2. The only transaction related to land was a purchase of land in Year 2. Requirements: Calculate the amount of cash inflow or (outflow) related to the investments account for Drea, Year 2. Calculate the amount of cash inflow or (outflow) related to the Land account for Year 2. Based on the above, what is Drea's cash flow from investing activities for Year 2?

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 9MCQ: Refer to the information for Cornett Company above. What amount should Cornett report on its...
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The following accounts and corresponding balances were drawn from Drea Company’s Year 2 and Year 1 year-end balance sheets.  (See below).

Other information drawn from the accounting records:

  1. Drea incurred a $1,500 loss on the sale of investment securities during Year 2.
  2. The only transaction related to land was a purchase of land in Year 2.

Requirements:

  1. Calculate the amount of cash inflow or (outflow) related to the investments account for Drea, Year 2.
  2. Calculate the amount of cash inflow or (outflow) related to the Land account for Year 2.
  3. Based on the above, what is Drea's cash flow from investing activities for Year 2?

 

Account Investments Land Year 2 104,300 125,900 Year 1 117,300 98,500 1 Cash inflow or (outflow) related to Investments 2 Cash inflow or (outflow) related to Land 3 Net Cash from Investing Activities
Transcribed Image Text:Account Investments Land Year 2 104,300 125,900 Year 1 117,300 98,500 1 Cash inflow or (outflow) related to Investments 2 Cash inflow or (outflow) related to Land 3 Net Cash from Investing Activities
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