Question

​Connecticut, Inc. uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance​ sheet: ​Connecticut, Inc. Comparative Balance Sheet December​ 31, 2019 and 2018 2019 2018 Increase​ / ​(Decrease) Cash $ 22 comma 000 $ 18 comma 000 $ 4 comma 000 Accounts Receivable 31 comma 000 39 comma 000 ​(8 comma 000​) Merchandise Inventory 56 comma 000 25 comma 000 31 comma 000 Plant and Equipment 126 comma 000 93 comma 000 33 comma 000 Accumulated DepreciationminusPlant and Equipment ​(48 comma 000​) ​(40 comma 000​) ​(8 comma 000​) Total Assets $ 187 comma 000 $ 135 comma 000 $ 52 comma 000 Additional information provided by the company includes the​ following: 1. Equipment was purchased for $ 67 comma 000 with cash. 2. Equipment with a cost of $ 34 comma 000 and accumulated depreciation of $ 7 comma 100 was sold for $ 47 comma 000. What was the amount of net cash provided by​ (used for) investing​ activities? A. ​$(166 comma 000​) B. $ 166 comma 000 C. ​$(20 comma 000​) D. $ 20 comma 000 Click to select your answer.

Answer 1

$20 comma (,) 000

Step-by-step explanation:

Answer 2

D. $ 20 comma 000

Step-by-step explanation:

First is necessary to find the total cash by indirect method which is equal to the variance in the amount of Cash at the Balance Sheets.

Next is necessary remove from that balance the Equipment purchased by 67,000 and then the Equipment sold by 47,000, with this modifications we have the amount of net cash provided by​ investing​ activities.

Assets 2019 2018

Cash $22,000 $18,000

Accounts Receivable $31,000 $39,000

Inventory $56,000 $25,000

TOTAL CURRENT ASSETS $109,000 $82,000

Property and Equipment $126,000 $93,000

Depreciation Acc. -$48,000 -$40,000

Building $33,000

TOTAL ASSETS $220,000 $135,000

Cash Flow Ind Method $4,000

Depreciation $8,000

Equipment Sold $40,000

Inventory $31,000

Accounts Receivable -$8,000

Equipment Purchased -$67,000