Northbrook Corporation sold machinery for $9,000 cash, purchased a building for $80,000 cash, issued stock to acquire an airplane and convert bonds, and paid a $10,000 cash dividend. Transaction 1, where machinery was sold for $9,000 cash, would be reported in the cash flows from investing activities section of the statement of cash flows.

1. Northbrook Corporation is preparing a statement of cash flows. The following transactions
occurred during the year:
1. Sold machinery for $9,000 cash.
2. Purchased a building for $80,000 cash.
3. Issued $70,000 worth of stock to acquire an airplane.
4. Converted long-term bonds by issuing $100,000 worth of stock.
5. Declared and paid a $10,000 cash dividend.
Transaction 1 would be found on the statement of cash flows in the
noncash investing and financing transactions section.
cash flows from financing activities section.
cash flows from operating activities section.
cash flows from investing activities section.
a. noncash investing and financing transactions section.
b. cash flows from financing activities section.
c. cash flows from operating activities section.
d. cash flows from investing activities section.
Solution
d. cash flows from investing activities section.