Tucker Tutoring Service Company recorded the following cash transactions for the year: Paid $55000 for salaries.
Paid $7000 to purchase office equipment.
Paid $6000 for utilities advertising and supplies.
Paid $12000 for rent.
Paid $18000 in dividends.
Collected $125000 from customers.
Borrowed $20000 from the bank.
What was the company's net cash provided (used) by investing activities?
A)($7000)
B)$7000
C)$13000
D)The amount cannot be determined from the information provided.

Question

Quizplus · Accepted Answer

The only investing activity listed is the purchase of office equipment for $7000. Since this represents an outflow of cash, the net cash provided by investing activities is ($7000).

Tucker Tutoring Service Company Recorded the Following Cash Transactions for the Year