A review of Pueblo Company\'s balance sheet revealed a beginning balance in its

Question

A review of Pueblo Company's balance sheet revealed a beginning balance in its Land account of $150,000. The ending balance in the account was $225,000. All transactions associated with the purchase or sale of land were cash transactions. Based on this information alone, Pueblo would show a $75,000 cash outflow in the financing activities section of its statement of cash flows. $225,000 cash outflow in the financing activities section of its statement of cash flows. $225,000 cash outflow in the investing activities section of its statement of cash flows. O $75.000 cash outflow in the investing activities section of ts statement of cash flows.

Explanation / Answer

Cash outflows=(225000-150000)=$75000

Hence such cash flow would be shown as a decrease in the investing section of the cash flow statement for the period(D).

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