Christopher Corp. is preparing its statement of cash flows using the indirect method. It provides the following information about transactions for the year: Plant assets, net-beginning balance: $108,000
Plant assets, net-ending balance: $144,000
Equipment costing $62,400 was purchased for cash
Equipment with a net asset value of $12,000 was sold for $16,800
Depreciation Expense of $14,400 was recorded during the year
What was the amount of net cash provided by (used for)investing activities?
A)$(45,600)
B)$45,600
C)$(60,000)
D)$(45,000)

Question

Quizplus · Accepted Answer

The net cash used for investing activities is calculated as: Cash paid for equipment purchase ($62,400) minus cash received from equipment sale ($16,800), resulting in a net cash outflow of $(45,600).