Questions are based on the data shown below related to the statement of cash flows for Litwin, Inc.:
Additional Information:
a. Accounts receivable and accounts payable relate to merchandise held for sale in the normal course of business. The allowance for bad debts was the same at the end of 2008 and 2007, and no receivables were charged against the allowance. Accounts
payable are recorded net of any discount and are always paid within the discount period.
b. The proceeds from the note payable were used to finance the acquisition of property, plant, and equipment. Capital stock was sold to provide additional working capital.
-The amount to be shown on the cash flow statement as net cash provided by investing activities would total what amount?
A) $225,000
B) $750,000
C) $795,000
D) $975,000

Question

Questions are based on the data shown below related to the statement of cash flows for Litwin, Inc.:
   Additional Information:
a. Accounts receivable and accounts payable relate to merchandise held for sale in the normal course of business. The allowance for bad debts was the same at the end of 2008 and 2007, and no receivables were charged against the allowance. Accounts
payable are recorded net of any discount and are always paid within the discount period.
b. The proceeds from the note payable were used to finance the acquisition of property, plant, and equipment. Capital stock was sold to provide additional working capital.
-The amount to be shown on the cash flow statement as net cash provided by investing activities would total what amount?
A) $225,000 
B) $750,000 
C) $795,000 
D) $975,000

Quizplus · Accepted Answer

$225,000 + ($2,190,000 - $1,440,000) = $975,000

Questions Are Based on the Data Shown Below Related to the Statement