Answer:
a) 65,000
Explanation:
Basically there are three types of activities:
1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.
2. Investing activities: It records those activities which include purchase and sale of the fixed assets
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.
The total amount which is reported under the investing activities are shown below:
= Book value of office equipment - loss incurred in selling office equipment
= $90,000 - $25,000
= $65,000
