Reference no: EM131896240

Question - Wofford Company provides the following information related to its investing and financing activities for the current year:

Cash receipts:
Sale of common stock	$250,000
Sale of equipment (at $34,000 loss)	156,000
Sale of land (at $50,000 gain)	160,000
Cash payments:
Purchase of equipment	$178,000
Purchase of treasury stock	45,000
Retirement of debt	36,500
Dividends on preferred and common stock	75,000

a. Calculate the net amount of cash provided by or used for investing activities for the year.

b. What impact does equipment sold at a loss, and land sold at a gain have on your calculation?

Gain on sale of land is reflected in the cash payments figure.

Loss on sale of equipment is reflected in the cash payments figure.

Loss or gain will be reflected in neither cash receipts nor cash payments figure.

Gain on sale of land is reported separately from cash receipts figure.

Loss on sale of equipment is reported separately from cash receipts.

The amount of gain or loss is reflected in the cash receipts figure.