Exhibit 12-4
Manning Company uses the indirect method to prepare the statement of cash flows.The following amounts are shown in its December 31,2013,financial statements.

-The following information is from the noncurrent asset portion of Randle Company's balance sheet.

The following activities occurred during 2013:
$\bullet$ Sold equipment with an original cost of $8,000 and a book value of $2,500 for $2,000 cash.
$\bullet$ Depreciation expense for the year totaled $18,000.
$\bullet$ Purchased property for $23,000 cash.
$\bullet$ Purchased long-term investments for $12,000 cash.
What is the amount of cash used by investing activities?

Question

Exhibit 12-4
Manning Company uses the indirect method to prepare the statement of cash flows.The following amounts are shown in its December 31,2013,financial statements.
 
-The following information is from the noncurrent asset portion of Randle Company's balance sheet.

The following activities occurred during 2013:
$\bullet$ Sold equipment with an original cost of $8,000 and a book value of $2,500 for $2,000 cash.
$\bullet$ Depreciation expense for the year totaled $18,000.
$\bullet$ Purchased property for $23,000 cash.
$\bullet$ Purchased long-term investments for $12,000 cash.
What is the amount of cash used by investing activities?

Quizplus · Accepted Answer

Cash used for investing activities is calculated as follows: 
Cash from sale of equipment = $2,000 
Cash used for purchase of property = ($23,000) 
Cash used for purchase of long-term investments = ($12,000) 
Net cash used for investing activities = $2,000 - $23,000 - $12,000 = ($33,000)

Exhibit 12-4 Manning Company Uses the Indirect Method to Prepare ∙\bullet∙

Exhibit 12-4
Manning Company Uses the Indirect Method to Prepare $\bullet$