How effect of transaction reported on statement of cash flow

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Reference no: EM131195073

Land Transactions on the Statement of Cash Flows

Rainbow Corporation purchased land for $360,000. Later in the year, the company sold a different piece of land with a book value of $180,000 for $120,000.

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 out flows, 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
Loss on sale of land	SelectNo effectAdded to net incomeDeducted from net incomePart of cash flows from financing activities Part of cash flows from investing activitiesItem 1	$
Cash received from sale of land	SelectNo effectAdded to net incomeDeducted from net incomePart of cash flows from financing activities Part of cash flows from investing activitiesItem 3	$
Cash paid for purchase of land	SelectNo effectAdded to net incomeDeducted from net incomePart of cash flows from financing activities Part of cash flows from investing activitiesItem 5	$

Reference no: EM131195073

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