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 $ 24,000 $ 25,000 $( 1,000 )
Accounts Receivable 34,000 37,000 ​(3,000​)
Merchandise Inventory 53,000 25,000 28,000
Plant and Equipment 125,000 93,000 32,000
Accumulated Depreciation-Plant and Equipment ​(46,000​) ​(42,000​) ​(4,000​)
Total Assets $ 190,000 $ 138,000 $ 52,000
Additional information provided by the company includes the​ following:
1. Equipment was purchased for $ 69,000 with cash.
2. Equipment with a cost of $ 37, 000 and accumulated depreciation of $ 7,000 was sold for $ 45,000.
Required :
1. What was the amount of net cash provided by​ (used for) investing​ activities?

Answer 1

Answer:

$24,000

Explanation:

Given that,

Equipment was purchased = $ 69,000 with cash.

Equipment with a cost = $ 37, 000

Accumulated depreciation = $ 7,000 was sold for $45,000

Net cash provided (used) by investing activities:

= Proceeds from sale of equipment - Equipment purchase for cash

= $ 45,000 - $69,000

= $24,000

Therefore, the amount of net cash provided by​ (used for) investing​ activities is $24,000.