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IZ Corporation purchased land for $500,000. Later in the year, the company sold a different piece of land with a book value of $250,000 for $280,000. How are the effects of these transactions reported on the statement of cash flows assuming the indirect method is used? Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, seled "No effect" from the drop down menu and leave the amount box blank. Transactions Action Amount $ Gain on sale of land Deducted from net income Cash received from sale of Part of cash flows from investing activities land Cash paid for purchase of Part of cash flows from investing activities land

IZ Corporation purchased land for $500,000. Later in the year, the company sold a different piece of land with a book value of $250,000 for $280,000. How are the effects of these transactions reported on the statement of cash flows assuming the indirect method is used? Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, seled "No effect" from the drop down menu and leave the amount box blank. Transactions Action Amount $ Gain on sale of land Deducted from net income Cash received from sale of Part of cash flows from investing activities land Cash paid for purchase of Part of cash flows from investing activities land

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 9DQ
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I know that to find the cahs flows from investing activities its like this:

Cash flows from investing activities         $xxx

cash used for investing activities               $xxx=

 Net Cash Flow from investing activities   $xxx

 

But each time I compute this problem it keeps saying incorrect. I am so confused. I tried multiple different times.

IZ Corporation purchased land for $500,000. Later in the year, the company sold a different piece of land with a book value of $250,000 for $280,000. How are the effects of these transactions reported on the statement of cash flows assuming the indirect method is used? Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank. Transactions Action Amount $ Gain on sale of land Deducted from net income Cash received from sale of Part of cash flows from investing activities land Cash paid for purchase of Part of cash flows from investing activities land
Transcribed Image Text:IZ Corporation purchased land for $500,000. Later in the year, the company sold a different piece of land with a book value of $250,000 for $280,000. How are the effects of these transactions reported on the statement of cash flows assuming the indirect method is used? Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank. Transactions Action Amount $ Gain on sale of land Deducted from net income Cash received from sale of Part of cash flows from investing activities land Cash paid for purchase of Part of cash flows from investing activities land
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