Problem:
In preparing its cash flow statement for the year ended December 31, 2013, Red Co. gathered the following data:
|
Gain on sale of land
|
$ 12,900
|
|
Proceeds from sale of land
|
22,000
|
|
Purchase of Blue, Inc. bonds (face value $214,000)
|
356,000
|
|
Amortization of bond discount
|
5,000
|
|
Cash dividends declared
|
100,000
|
|
Cash dividends paid
|
72,000
|
|
Proceeds from sales of common stock
|
160,000
|
Required:
Question: In its December 31, 2013, statement of cash flows, what amount should Red report as net cash outflows from investing activities?
A) $192,000.
B) $321,100.
C) $378,000.
D) $334,000.
Note: Provide support for your rationale.