Kilduff Corporation's balance sheet and income statement appear below: The company sold equipment for $19 that was originally purchased for $10 and that had accumulated depreciation of $5. The company paid a cash dividend of $44 and it did not issue any bonds payable or repurchase any of its own common stock. The net cash provided by (used in) investing activities for the year was:
A)$19
B)($118)
C)($137)
D)$118

Question

Kilduff Corporation's balance sheet and income statement appear below:   The company sold equipment for $19 that was originally purchased for $10 and that had accumulated depreciation of $5. The company paid a cash dividend of $44 and it did not issue any bonds payable or repurchase any of its own common stock. The net cash provided by (used in) investing activities for the year was:
A)$19 
B)($118) 
C)($137) 
D)$118

Quizplus · Accepted Answer

The sale of equipment for $19 that was originally purchased for $10 and had accumulated depreciation of $5 results in a gain of $4 ($19 - $10 - $5). This gain is reported as an investing activity on the statement of cash flows. 
Additionally, there is no information provided about purchases of additional equipment, so it can be assumed that there were no other investing activities. 
Therefore, the net cash provided by (used in) investing activities for the year is ($118) [($4 gain on sale of equipment) - $114 (cash dividend)].

Kilduff Corporation's Balance Sheet and Income Statement Appear Below