Harnett Enterprises had a net loss of $14,000 in 2017.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: $\begin{array}{lc}
&{\text { (Increase/(Decrease) }} \
\text { Accounts receivable } & (\$ 3,000) \
\text { Long-term investments } & 16,000 \
\text { Interest payable } & (2,000) \
\text { Notes payable } & 65,000 \
\text { Property, plant, and equipment } & 42,000
\end{array}$ 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 2017.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: $\begin{array}{lc} 
&{\text { (Increase/(Decrease) }} \
\text { Accounts receivable } & (\$ 3,000) \
\text { Long-term investments } & 16,000 \
\text { Interest payable } & (2,000) \
\text { Notes payable } & 65,000 \
\text { Property, plant, and equipment } & 42,000
\end{array}$ 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

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 addition to property, plant, and equipment ($42,000) both represent cash outflows, totaling $58,000 used in investing activities.

Harnett Enterprises Had a Net Loss of $14,000 in 2017