Reference no: EM132599852

Justine Bieber Company provided the following information for the current year:

• Purchased a building for ? 1,200,000. Paid ? 400,000 and signed a mortgage with the seller for the remaining ? 800,000.
• Executed a debt-equity swap and replaced a ? 600,000 loan by giving the lender ordinary shares worth ? 600,000 on the date the swap was executed.
• Purchased land for ? 1,000,000. Paid ? 350,000 and issued ordinary shares worth ? 650,000.
• Borrowed ? 550,000 under a long-term loan agreement.
• Used the cash from the loan proceeds for purchase of additional inventory ? 150,000, payment of cash dividend ? 300,000 and increase the cash balance ? 100,000.

Question 1: What amount should be reported as net cash used in investing activities in the statement of cash flows?

Group of answer choices

Option 1: P 400,000

Option 2: P 2,200,000

Option 3: P 1,200,000

Option 4: P 750,000