Buckley Corporation's most recent comparative balance sheet appears below: The company's net income for the year was $91 and it paid a cash dividend of $22.It did not dispose of any property,plant,and equipment during the year.The company did not retire 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)($69)
B)$69
C)$136
D)($136)

Question

Buckley Corporation's most recent comparative balance sheet appears below:  The company's net income for the year was $91 and it paid a cash dividend of $22.It did not dispose of any property,plant,and equipment during the year.The company did not retire 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)($69) 
B)$69 
C)$136 
D)($136)

Quizplus · Accepted Answer

To calculate the net cash provided by (used in) investing activities, we need to compare the property, plant, and equipment (PP&E) balances on the two balance sheets. In this case, the PP&E balance increased from $583 to $713, which means that the company invested $130 in new property, plant, and equipment during the year.

To find the net cash provided by (used in) investing activities, we need to subtract the increase in PP&E from the net cash provided by operating activities and add back the cash dividend paid.

Net cash provided by operating activities = $184 
Increase in PP&E = $130 
Cash dividend paid = ($22)

Net cash provided by (used in) investing activities = $184 - $130 + ($22) = $32

However, the question is asking for the net cash provided by (used in) investing activities, so the correct answer is actually the opposite of the calculated value, or ($32) which is closest to option D).

Buckley Corporation's Most Recent Comparative Balance Sheet Appears Below