Harnett Enterprises had a net loss of $14,000 in 2014. Dividends of $15,000 were declared and paid during the year and the company reported depreciation expense of $15,000. Changes in the following selected accounts occurred during the year: $$\begin{array} { l c }
& \text { Increase/(Decrease) } \
\text { Accounts receivable } & (\$ 3,000) \
\text { Long-term investments } & 16,000 \
\text { Interest payable } & (2,000) \
\text { Notes payable } & 65,000 \
\text { Property, plant, and equipment } & 42,000
\end{array}$$ No property, plant, and equipment were sold during the year. How much is the company's net cash provided(used) by investing activities?

Question

Harnett Enterprises had a net loss of $14,000 in 2014. Dividends of $15,000 were declared and paid during the year and the company reported depreciation expense of $15,000. Changes in the following selected accounts occurred during the year: $$\begin{array} { l c } 
& \text { Increase/(Decrease) } \
\text { Accounts receivable } & (\$ 3,000) \
\text { Long-term investments } & 16,000 \
\text { Interest payable } & (2,000) \
\text { Notes payable } & 65,000 \
\text { Property, plant, and equipment } & 42,000
\end{array}$$ No property, plant, and equipment were sold during the year. How much is the company's net cash provided(used) by investing activities?

Quizplus · Accepted Answer

The net cash used by investing activities is calculated by considering the changes in long-term investments and property, plant, and equipment. The increase in long-term investments ($16,000) and the increase in property, plant, and equipment ($42,000) result in a total cash outflow of $58,000.

Harnett Enterprises Had a Net Loss of $14,000 in 2014