Land Transactions on the Statement of Cash Flows Veteran Cor

Land Transactions on the Statement of Cash Flows

Veteran Corporation purchased land for $250,000. Later in the year, the company sold a different piece of land with a book value of $133,000 for $149,000.

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
Gain or loss on sale of land	Deducted from net income	$
Cash received from sale of land	Part of cash flows from investing activities	$
Cash paid for purchase of land	Part of cash flows from investing activities	$

Solution

Transactions Action Amount Gain or loss on sale of land Deducted from net income $16,000 Cash received from sale of land Part of cash flows from investing activities $149,000 Cash paid for purchase of land Part of cash flows from investing activities -$250,000