Northington, inc. is preparing the company's statement of cash flows for the fiscal year just ended. using the following information, determine the amount of cash flows from investing activities: net income $182,000 gain on the sale of equipment 12,300 proceeds from the sale of equipment 92,300 depreciation expense — equipment 50,000 payment of bonds at maturity 100,000 purchase of land 200,000 issuance of common stock 300,000 increase in merchandise inventory 35,400 decrease in accounts receivable 28,800 increase in accounts payable 23,700 payment of cash dividends 32,000

The amount of cash flows from investing activities is - $107,700

Explanation:

Cash flow statement : The cash flow statement comprise of three activities which includes three types of activities.

Operating activities which reflects the changes in currents assets and current liabilities

Investing activities includes transactions which are related to fixed assets and intangible assets like - purchase and sale of machinery, plant, fixtures, etc.

Financing activities includes those activities which is for long term use and which helps to increase shareholder wealth. Like : redemption of debentures etc.

So,

The amount of cash flows from investing activities is calculated by using an equation which is shown below:

= Sale of equipment - purchase of land

= $92,300 - $200,000

= - $107,700

Since, the amount is negative so it affect the cash flow statement directly.

Thus, the amount of cash flows from investing activities is - $107,700

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