Reference no: EM131697857

Question: Cash Flow from Investing Activities During 2011, Baker Company had the following transactions:

a. Purchased $100,000 of 10-year bonds issued by Makenzie, Inc.

b. Acquired land valued at $35,000 in exchange for machinery.

c. Sold equipment with original cost of $270,000 for $165,000; accumulated depreciation taken on the equipment to the point of sale was $90,000.

d. Purchased new machinery for $120,000.

e. Purchased common stock in Lemmons Company for $55,000.

Required: 1. Prepare the net cash from investing activities section of the statement of cash flows.

2. Conceptual Connection: Usually, the net cash from investing activities is negative. How can Baker cover this negative cash flow? What other information would you like to have to make this decision?