Paxson Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Paxson Mining Co. for 2009 and 2008 are provided below.
The following additional data were provided:
1) Dividends for the year 2009 were $96,000.
2) During the year, equipment was sold for $120,000. This equipment cost $176,000 originally and had a book value of $144,000 at the time of sale. The loss on sale was incorrectly charged to cost of sales.
3) All depreciation expense is in the selling expense category.
relate to a statement of cash flows for the year ended December 31, 2009, for Paxson Mining Company.
-The net cash provided (used) by investing activities is
A) $(176,000).
B) $24,000.
C) $120,000.
D) $(144,000).

Question

Paxson Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Paxson Mining Co. for 2009 and 2008 are provided below.
   The following additional data were provided:
1) Dividends for the year 2009 were $96,000.
2) During the year, equipment was sold for $120,000. This equipment cost $176,000 originally and had a book value of $144,000 at the time of sale. The loss on sale was incorrectly charged to cost of sales.
3) All depreciation expense is in the selling expense category.
 relate to a statement of cash flows for the year ended December 31, 2009, for Paxson Mining Company.
-The net cash provided (used) by investing activities is
A) $(176,000). 
B) $24,000. 
C) $120,000. 
D) $(144,000).

Quizplus · Accepted Answer

The Answer of Paxson Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Paxson Mining Co. for 2009 and 2008 are provided below.
   The following additional data were provided:
1) Dividends for the year 2009 were $96,000.
2) During the year, equipment was sold for $120,000. This equipment cost $176,000 originally and had a book value of $144,000 at the time of sale. The loss on sale was incorrectly charged to cost of sales.
3) All depreciation expense is in the selling expense category.
 relate to a statement of cash flows for the year ended December 31, 2009, for Paxson Mining Company.
-The net cash provided (used) by investing activities is
A) $(176,000). 
B) $24,000. 
C) $120,000. 
D) $(144,000).