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:

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:

Quizplus · Accepted Answer

To find the net cash provided by (used in) investing activities, we need to look at the changes in the investing section of the cash flow statement.

We know that the company sold equipment for $19 that was originally purchased for $10, so there is a gain of $9. However, we need to adjust for the accumulated depreciation of $5, which means that the net cash inflow from the sale of equipment is $4.

There are no other investing activities mentioned in the question, so the net cash provided by (used in) investing activities is simply the cash inflow from the sale of equipment, which is $4.

However, we need to note that this answer is negative since the cash inflow from the sale of equipment is less than the initial cost of the equipment ($10), meaning that the company incurred a net loss in its investing activities. Therefore, the correct answer is (B) $(118).

Kilduff Corporation's Balance Sheet and Income Statement Appear Below