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Luke Corporation is a manufacturer of home furnishings. Its selected financial information in the year is listed below:
| Borrowed $850,000 from a bank |
| Purchased equipment for $210,000 in cash |
| Purchase investments for $285,000 |
| Received dividends of $51,000 from an investment in Davis Corp. |
| Paid dividends of $55,000 |
| Issued shares of preferred stock for $500,000 |
| Repurchased outstanding common shares using $100,000 in cash |
| Purchased land for $100,000 cash |
| Paid $36,000 interest expense on a bank loan |
| Increased Inventories by $320,000 |
| Increased accounts receivable by $217,000 |
| Increased accounts payable $85,000 |
Based on GAAP, what is Lukes cash flows from investing activities?
$595,000
$510,000
$850,000
$491,000
Answer & Explanation
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