Cash Activities in 2019: Stay Invested for a Bright Future

What was the Net cash provided by investing activities in 2019 for Forever Young, Inc.?

A. $ 128,000

B. $ 172,000

C. $ 190,000

D. $ 92,000

Answer:

The Net cash provided by investing activities​ is $172,000.

Hence, the correct option is B. $ 172,000

In 2019, Forever Young, Inc. had significant cash activities. They sold land for $110,000, purchased equipment for $18,000, and issued bonds for $80,000, all in cash.

Net cash provided by investing activities can be calculated by subtracting the cash used for purchasing equipment from the cash received from selling land and adding the cash obtained from issuing bonds.

Calculation:

Land sold for cash = $110,000

Equipment purchased for cash = $18,000

Bonds issued for cash = $80,000

Net cash provided by investing activities = Land sold - Equipment purchased + Bonds issued

= $110,000 - $18,000 + $80,000

= $110,000 + $62,000

= $172,000

Therefore, the correct answer is that the Net cash provided by investing activities in 2019 for Forever Young, Inc. was $172,000. By investing wisely and managing their cash activities effectively, the company can continue to grow and thrive for a brighter future.