Autry Corporation's balance sheet and income statement appear below: Cash dividends were $40.The company sold equipment for $19 that was originally purchased for $6 and that had accumulated depreciation of $4.The net cash provided by (used in)investing activities for the year was:
A)$19
B)$140
C)($159)
D)($140)

Question

Autry Corporation's balance sheet and income statement appear below:   Cash dividends were $40.The company sold equipment for $19 that was originally purchased for $6 and that had accumulated depreciation of $4.The net cash provided by (used in)investing activities for the year was:
A)$19 
B)$140 
C)($159) 
D)($140)

Quizplus · Accepted Answer

To calculate the net cash provided by (used in) investing activities, we need to consider the cash inflow from the sale of equipment and the cash outflow from the purchase of equipment. However, there is no information given about purchases of equipment in the statements provided.

The sale of equipment for $19 results in a gain of $9 ($19 - $6 - $4), which means that this is the cash inflow from investing activities. The cash dividends paid of $40 are a cash outflow from financing activities and do not affect investing activities.

Therefore, the net cash provided by (used in) investing activities for the year is:
$19 (cash inflow from sale of equipment) - $0 (no cash outflow for equipment purchases) = $19

However, the question asks for the net cash provided by (used in) investing activities, not just cash inflow. Therefore, the answer is:
$19 (cash inflow from sale of equipment) - $159 (cash outflow from paying dividends) = ($140) 11ea7998_5c13_c255_911b_3973f05de04a_TB2627_00_TB2627_00

Autry Corporation's Balance Sheet and Income Statement Appear Below