Dover Co.'s comparative balance sheet indicated that the Equipment account increased by $40,000.Upon further investigation of the account changes,it is determined that Dover purchased equipment totaling $70,000 for the year.It also sold equipment with an original cost of $30,000 for $8,000 cash.Assuming these are the only transactions affecting the investing activities,Dover will report net cash flows provided by (used in)investing activities of:
A) ($40,000).
B) ($70,000).
C) ($32,000).
D) ($62,000).

Question

Quizplus · Accepted Answer

Dover purchased equipment for $70,000 (cash outflow) and sold equipment for $8,000 (cash inflow). The net cash flow from investing activities is $8,000 - $70,000 = -$62,000.

Dover Co'S Comparative Balance Sheet Indicated That the Equipment Account Increased