In preparing its cash flow statement for the year ended December 31, 1998, Roman Co. collected the following data:
Gain on sale of equipment $6,000
Proceeds from sale of equipment 10,000
Purchase of A.S. Inc. bonds (par value $200,000)180,000
Amortization of bond discount2,000
Dividends declared 45,000 -
Dividends paid 38,000 -
Proceeds from sale of treasury stock
(carrying amount of $65,000)75,000
In its December 31, 1998 statement of cash flows, what amount should Roman report as net cash used in investing activities?
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A. B. C. D. E.C
Investing activities include the acquisition and disposal of all long-term assets. Thus, the proceeds from sale of equipment of $10,000 and purchase of bonds of
$180,000 result in a net use of cash of $170,000 from investing ($10,000-180,000).