Red Co. had the following transactions through December 31: Cash proceeds from the sale of investment in Gold Co. stock $ 15,000 Dividends received on investment in Blue Co. stock $ 10,000 Repaid principal on a loan to the bank $ 35,000 Acquired investment in Yellow Co. stock $ 75,000 Proceeds from the disposal of factory equipment $ 12,000 What amount should Red report as net cash used by investing activities in its statement of cash flows for the period ended December 31

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anthougo anthougo · Answer 1 · 2021-05-28T02:50:09+02:00

Answer:

Red Co.

The amount that Red Co should report as net cash used by investing activities in its statement of cash flows for the period ended December 31 is:

= $38,000.

Explanation:

a) Data and Calculations:

Investing activities section of the Statement of Cash Flows:

Sales of investment in Gold Co stock $15,000

Dividends received on Blue Co. stock 10,000

Purchase of investment in Yellow Co (75,000)

Proceeds from the disposal of equipment 12,000

Net cash used by investing activities $38,000