Arkansas 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: $111,000
Plant assets, net-ending balance: $145,000
Equipment was purchased for $65,000 with cash.
Equipment with a net asset value of $12,000 was sold for $19,000.
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 used for investing activities is calculated as the cash paid for equipment ($65,000) minus the cash received from the sale of equipment ($19,000), resulting in a net cash outflow of $46,000.