Shimko Corporation's most recent comparative balance sheet and income statement appear below: The company paid a cash dividend of $19 and it did not dispose of any property, plant, and equipment. The company 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:
A) $57
B) $(57)
C) $33
D) $(33)

Question

Shimko Corporation's most recent comparative balance sheet and income statement appear below:  The company paid a cash dividend of $19 and it did not dispose of any property, plant, and equipment. The company 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:
A) $57 
B) $(57) 
C) $33 
D) $(33)

Quizplus · Accepted Answer

The net cash provided by investing activities can be calculated as follows:
Cash paid for property, plant, and equipment - 190 + Proceeds from sale of property, plant, and equipment + 247 = 57 (negative sign due to parenthesis around property, plant, and equipment in cash flow statement). As there were no disposals of property, plant, and equipment, the only investing activity was the purchase of property, plant, and equipment, which would have led to a net cash outflow of $57.

Shimko Corporation's Most Recent Comparative Balance Sheet and Income Statement