Dr.Mark Veterinary Services recorded the following cash transactions for the year: Paid $154000 for salaries.
Paid $85000 to purchase equipment.
Paid $49000 for utilities supplies insurance and advertising.
Paid $36000 for rent.
Issued shares of stock for $60000
Paid $28000 in dividends.
Collected $650000 from customers.
Paid $3600 to purchase investments.
What was the company's net cash provided (used) by investing activities?

Question

Quizplus · Accepted Answer

The company's net cash provided (used) by investing activities can be found by subtracting the cash paid to purchase investments (which is an investing activity) from the total cash inflows from customers (which includes operating activities).

Net cash provided (used) by investing activities = total cash inflows from customers - cash paid to purchase investments
= $650,000 - $3,600
= $646,400

Therefore, the correct choice is C, which represents a net cash outflow of $88,600 from investing activities.

DrMark Veterinary Services Recorded the Following Cash Transactions for the Year