Question

Arkansas Corp. is preparing its statement of cash flows using the indirect method. It provides the following information about transactions for the​ year: Plant​ assets, netlong dashbeginning ​balance: $ 110 comma 000 Plant​ assets, netlong dashending ​balance: $ 145 comma 000 Equipment was purchased for $ 65 comma 000 with cash. Equipment with a net asset value of​ $12,000 was sold for $ 17 comma 000. Depreciation Expense of $ 17 comma 000 was recorded during the year. What was the amount of net cash provided by​ (used for) investing​ activities?

Answer 1

Answer:

($48,000)

Explanation:

The computation of net cash provided by investing activities is shown below:-

Cash flow from investing activities

Purchase of Equipment ($65,000)

Sale of Existing Equipment $17,000

Net Cash from Investing activities ($48,000)

As the investing activities recorded those cash transactions which are related to the purchase and sale of long term assets. The purchased is cash outflow as cash is gone so it would be shown in a negative sign while the sale is cash inflow as cash is come so it would be shown in a positive sign