Geller Florist Inc. had the following transactions during 2015:

Purchased a $200,000 warehouse with $50,000 cash and a $150,000 mortgage from a bank.

Raised $100,000 from selling new shares of stock to investors. The cash was used to buy land to grow tulips.

Sold an old building for $50,000 (and suffered a loss on sale of $5,000) and used the cash to buy a new truck.

What is the net impact of these transactions on Geller's Cash from Investing Activities during 2015

Question

Brownie

Business

30 January, 05:56

Geller Florist Inc. had the following transactions during 2015:

Purchased a $200,000 warehouse with $50,000 cash and a $150,000 mortgage from a bank.

Raised $100,000 from selling new shares of stock to investors. The cash was used to buy land to grow tulips.

Sold an old building for $50,000 (and suffered a loss on sale of $5,000) and used the cash to buy a new truck.

What is the net impact of these transactions on Geller's Cash from Investing Activities during 2015

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Answers (1)

Know the Answer?

Tatum Nunez · Answer 1

- $300,000

Explanation:

Net cash flow from investing activities:

= Cash paid for purchasing a warehouse + Cash paid for purchase a land + Cash proceeds from sale of building + Cash paid to buy a new truck

= ( - $200,000) + ( - $100,000) + $50,000 + ( - $50,000)

= ( - $300,000)

Therefore, the net impact of these transactions on Geller's Cash from Investing Activities during 2015 is ( - $300,000).