Question

Financial statements of Rukavina Corporation follow:

Comparative Balance Sheet
Ending Balance Beginning Balance
Assets:
Cash and cash equivalents $ 36 $ 38
Accounts receivable 39 44
Inventory 34 35
Property, plant, and equipment 386 360
Less accumulated depreciation 202 191
Total assets $ 293 $ 286
Liabilities and stockholders' equity:
Accounts payable $ 71 $ 61
Bonds payable 176 220
Common stock 81 80
Retained earnings (35 ) (75 )
Total liabilities and stockholders' equity $ 293 $ 286

Income Statement
Sales $ 518
Cost of goods sold 336
Gross margin 182
Selling and administrative expense 113
Net operating income 69
Income taxes 21
Net income $ 48
Cash dividends were $8.

The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.

The net cash provided by (used in) investing activities for the year was:

Answer 1

Answer: ($26)

Step-by-step explanation:

Investing Activities in the Indirect method of the Cashflow statement include transactions regarding the purchase or sale of Fixed Assets and other company stocks and bonds.

In the statement above, we notice that the company has no investments outside the company as it owns no stocks or bonds.

The relevant account then would be the, Property, plant, and equipment.

The Property, plant, and equipment account started the year at $360 and ended at $386. This shows that there was an increase in the account and seeing as there was no disposal, this was probably due to an Acquisition.

When there is an increase that means cash was spent so the Cashflow statement reflects a Cash Outflow or money spent.

= 386 - 360

= $26

($26) was used in investing activities for the year.