Christopher Ltd is preparing its cash flow statement using the indirect method.It provides the following information about transactions for the year: Non-current assets,net-beginning balance: $111,000
Non-current assets,net-ending balance: $144,000
Equipment costing $67,000 was purchased for cash
Equipment with a net asset value of $12,000 was sold for $17,000
Depreciation expense of $19,000 was recorded during the year
What was the amount of net cash provided by (used for)investing activities?

Question

Quizplus · Accepted Answer

The net cash provided by (used for) investing activities can be calculated as follows:
Cash paid for purchase of equipment: -$67,000
Cash received from sale of equipment: +$17,000
Net change in non-current assets: +($144,000 - $111,000) = +$33,000
Depreciation expense is a non-cash item and is added back in the operating activities section.
Therefore, the net cash provided by (used for) investing activities is -$50,000.

Christopher Ltd Is Preparing Its Cash Flow Statement Using the Indirect