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Three years ago, James Company purchased stock in Zebra Inc. at a cost of $100,000.This stock was sold for $150,000 during the current fiscal year.

The result of this transaction should be shown in the Investing Activities Section of James’ Statement of Cash Flows as

a. Zero.

 

b. $50,000.

 

c. $100,000.

 

d. $150,000.

 

 

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Question added by mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia
Date Posted: 2015/06/10
Disha Acharya
by Disha Acharya , Finance Manager , OWS CAPITAL & EVENTS MANAGEMENT LLC

Answer will be D. $150,000 should be added in Investing Activities as that is the inflow of Cash. And also the profit of $50,000 should be reduced from Operating Activities.

Jiju Oommen
by Jiju Oommen , ERP Software Consultant , Simplex IT Solutions

d. $150,000.

 

Cash Inflow would be $150,000, although Profit is $50,000

Wasim khan wazir
by Wasim khan wazir , Finance Specialist , Mott Macdonald

150000 Is correct option if the nature of stock was not for daily resale inventory of business. otherwise decrease in inventory should be added to operating activity.

عبدالحميد عفلي
by عبدالحميد عفلي , متصرّف مسؤول المحاسبة العامة والنزاعات الجبائية , الشركة الجهوية للنقل بالقيروان

150,000 dollars........................................

Cash inflow $150k should be reported under investing activities this year and profit on sale of investment $50k should be deducted from net profit to show the clear cash flow from operating activities..

Tranquilino Jr Rivera
by Tranquilino Jr Rivera , General Accountant , Enany Group of Companies

Answer is D. The cash inflow of $150,000.00 should be reflected in the investing section of the Cash Flow Statement.

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

Correct answer is ( B )150000$

Waseem Bashir
by Waseem Bashir , Banking Services Manager , Allied Bank Ltd

Cash inflow with rupees150000 outflow of cash has already been recorded3 year ago with rupees one lac.

Khaled Mohee Eldeen Abbas Mahmoud
by Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

d. $150,000. should be shown in the Investing Activities Section of James’ Statement of Cash Flows

DIN BANDHU SINGH
by DIN BANDHU SINGH , Chief Accountant , ELITE TRADING ALLIANCE CO (El Seif Group of Companies)

D...............................................................................

حسين محمد ياسين
by حسين محمد ياسين , Finance Manager , مؤسسة عبد الماجد محمد العمر للمقاولات العامة

answer is150,000.00 >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>