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Rodriguez Ltd Uses the Indirect Method to Prepare Its Cash

Question 74

Multiple Choice

Rodriguez Ltd uses the indirect method to prepare its cash flow statement.Refer to the following portion of the comparative balance sheet:
Rodriguez Ltd
Comparative balance sheet
as at 31 December 2017 and 2016
20172016 Increase/decrease  Cash $21,000$24,000$3000 Accounts receivable 32,00040,0008000 Inventory 60,00026,00034,000 Plant and equipment 123,000$1,00032,000 Accumulated depreciation - plant  and equipment (46,000) (43,000) (80,000)  Total assets $190,000$138,000$135,000\begin{array} { | l | l | l | l | } \hline & { 2017 } & { 2016 } & { \text { Increase/decrease } } \\\hline \text { Cash } & \$ 21,000 & \$ 24,000 & \$ 3000 \\\hline \text { Accounts receivable } & 32,000 & 40,000 & - 8000 \\\hline \text { Inventory } & 60,000 & 26,000 & 34,000 \\\hline \text { Plant and equipment } & 123,000 & \$ 1,000 & 32,000 \\\hline \text { Accumulated depreciation - plant } & & & \\\text { and equipment } & ( 46,000 ) & ( 43,000 ) & ( 80,000 ) \\\hline \text { Total assets } & \$ 190,000 & \$ 138,000 & \$ 135,000 \\\hline\end{array}
Additional information provided by the company includes the following:
Additional information provided by the company includes the following:
1) Equipment costing $68,000 was purchased for cash.
2) Equipment with a cost of $34,000 and accumulated depreciation of $7100 was sold for $48,000.
What was the amount of net cash provided by (used for) investing activities?


A) $(20,000)
B) $251,000
C) $20,000
D) $(251,000)

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