Arkansas Corp. is preparing its statement of cash flows using the indirect metho

ID: 2336384 • Letter: A

Question

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: $110,000 Plant assets, net-ending balance: $147,000 Equipment was purchased for $67,000 with cash. Equipment with a net asset value of $12,000 was sold for $20,000 Depreciation Expense of $16,000 was recorded during the year. What was the amount of net cash provided by (used for) investing activities? OA. $(47,000) B. O C. OD. $(63,000) $47,000 $(41,000)

Explanation / Answer

Answer:

Net cash provided by (used for) investing activities =A ) $ (47,000)

Working notes for the above answer is as under

Cash provided by (used for) investing activities

Amount $

Cash payment for the purchase of equipment

-67000

Cash receipt from disposal of equipment

20,000

Net cash provided by (used for) investing activities

-47,000