Question

The balance sheet data of Corinne Company at the end of 2025 and 2024 follow: 2025 2024 Cash $50 $70 Accounts receivable (net) 320 270 Buildings and equipment 200 150 Accumulated depreciation - buildings and equipment (36) (16) Land 180 80 Totals $714 $554 Accounts payable $180 $146 Notes payable - bank, long-term 0 80 Mortgage payable 60 0 Common stock, $10 par 418 318 Retained earnings 56 10 Totals $714 $554 Land worth $100 was acquired in exchange for common stock, par $100, during the year; all equipment purchased was with cash. Equipment costing $10 was sold for $12; book value of the equipment was $8. Cash dividends of $20 were charged to retained earnings and paid during the year; the transfer of net income to retained earnings was the only other entry in the Retained Earnings account. In the statement of cash flows for the year ended December 31, 2025, the net cash provided (used) by investing activities was:

Answer 1

Corinne Company

Investing Activities Section of the Statement of Cash Flows:

Equipment sales $12

Equipment bought ($58)

Net cash used ($46)

Step-by-step explanation:

a) Data and Calculations:

Balance Sheet of Corinne company at the end of 2025 and 2024:

2025 2024

Cash $50 $70

Accounts receivable (net) 320 270

Buildings and equipment 200 150

Accumulated depreciation

- buildings and equipment (36) (16)

Land 180 80

Totals $714 $554

Accounts payable $180 $146

Notes payable- bank long term 0 80

Mortgage payable 60 0

Common stock, $10 par 418 318

Retained earnings 56 10

Totals $714 $554

b) other information:

Land and Common Stock exchange

Equipment sold for $12 (cost $10 and book value $8)

Cash dividends $20

c) Equipment account

Beginning balance 150

Equipment sold -8

Balance 142

Closing balance 200

Purchase of new 58 (200 - 142)