McCorey Corporation recorded the following events last year: On the statement of cash flows, some of these events are classified as operating activities, some are classified as investing activities, and some are classified as financing activities. Based solely on the information above, the net cash provided by (used in) investing activities on the statement of cash flows would be:
A)$110,000
B)$55,000
C)$150,000
D)$130,000

Question

McCorey Corporation recorded the following events last year:  On the statement of cash flows, some of these events are classified as operating activities, some are classified as investing activities, and some are classified as financing activities. Based solely on the information above, the net cash provided by (used in) investing activities on the statement of cash flows would be:
A)$110,000 
B)$55,000 
C)$150,000 
D)$130,000

Quizplus · Accepted Answer

The only event that represents an investing activity is the sale of equipment for $130,000. All the other events listed are either operating activities (such as the increase in accounts payable and decrease in accounts receivable) or financing activities (such as the issuance of bonds payable and the payment of dividends). Therefore, the net cash provided by investing activities is $130,000.

McCorey Corporation Recorded the Following Events Last Year: on the Statement