Buckley Corporation's most recent comparative balance sheet appears below: The company's net income for the year was $91 and it paid a cash dividend of $22. It did not dispose of any property, plant, and equipment during the year. The company did not retire any bonds payable or repurchase any of its own common stock. The net cash provided by (used in) investing activities for the year was:
A)($69)
B)$69
C)$136
D)($136)

Question

Buckley Corporation's most recent comparative balance sheet appears below:  The company's net income for the year was $91 and it paid a cash dividend of $22. It did not dispose of any property, plant, and equipment during the year. The company did not retire any bonds payable or repurchase any of its own common stock. The net cash provided by (used in) investing activities for the year was:
A)($69) 
B)$69 
C)$136 
D)($136)

Quizplus · Accepted Answer

To calculate the net cash provided by (used in) investing activities, we need to analyze the changes in the property, plant, and equipment section of the balance sheet. Since there were no disposals during the year, the change in this section is equal to the capital expenditures (purchase of property, plant, and equipment).

From the balance sheet, we can see that property, plant, and equipment increased from $184 to $320, which means the company spent $136 ($320 - $184) on purchasing these assets during the year. Since this is a cash outflow, the answer is (D) $136.

Buckley Corporation's Most Recent Comparative Balance Sheet Appears Below