Question

Kampy Krusty Corp.'s transactions for the year ended December 31, 20XX included the following:

* Kampy Krusty Corp. borrowed $110,000 they signed a 9%note
* Kampy Krusty Corp purchased real estate for $110,000
*Sold investment securities for $100,000
* Paid dividends of $120,000
* Issued 500 shares of common stock for $50,000
* Purchased machinery and equipment for $25,000 cash
* Paid $90,000 toward a bank loan
* Reduced accounts receivable by $20,000
*Increased accounts payable by $40,000

Kampy Krusty's net cash used in investing activities for 20XX was:

a. $135,000
b. $75,000
c. $35,000
d. $10,000

Answer 1

c. $35,000

Step-by-step explanation:

Calculation to determine what Kampy Krusty's net cash used in investing activities for 20XX was:

Purchase of real estate ($110,000)

Sales of investment securities $100,000

Purchased machinery and equipment ($25,000)

Cash used in investing activities $35,000

Therefore Kampy Krusty's net cash used in investing activities for 20XX was:$35,000