Flin
Flon Corporation, which follows IFRS, had the following activities in 2011.
1.
Sold land for $140,000.
2.
Purchased temporary investment in common shares for $15,000 with the intention
of trading.
3.
Purchased inventory for $845,000.
4.
Received $73,000 cash from bank borrowings.
5.
Retired $76,000 of bonds payable.
6.
Purchased equipment for $495,000.
7.
Issued common shares for $350,000.
8.
Recorded a holding gain of $3,000 on investments accounted for using the fair
value through net income (FV-NI) model.
9.
Purchased investments in bonds, reported at amortized cost for $61,000.
10.
Declared and paid a dividend of $18,000 (charged to retained earnings).
11.
Investments in bonds reported at amortized cost, with a carrying amount of
$410,000, were sold for $415,000.
12.
Dividends were received for $4,000.
Calculate
the amount that Flin Flon should report as net cash provided (used) by
investing activities in its statement of cash flows. Flin Flon has adopted the
policy of classifying dividends paid as financing activities and dividends
received as investing activities on the cash flow statement.
|
Cash
flow from investing activities
|
|
|
|
Proceeds from sale of land
|
$140,000
|
|
|
Proceeds from sale of bonds
|
415,000
|
|
|
Purchase of equipment
|
(495,000)
|
|
|
Dividends
received
|
4,000
|
|
|
Purchase of investments in bonds, at
|
|
|
|
amortized
cost
|
(61,000)
|
|
|
Net cash provided by investing activities
|
$ 3,000
|
|
