19. Given the following information, determine the amount of cash flows from inv

Question

19. Given the following information, determine the amount of cash flows from investing and financing activities.

Net Income: 50000
Loss on sale of plant assets: 15000
Cash received from sale of plant assets: 26000
Cash received from issuing stock: 70000
Increase in income taxes payable: 120000

A. Cash provided by investing activities $11000
Cash provided by financing activities $70000

B. Cash used by investing activities $11000
Cash used by financing activities $70000

C. Cash provided by investing activities $26000
Cash provided by financing activities $55000

D. Cash used by investing activities $26000
Cash used by financing activities $55000

E. Cash provided by investing activities $26000
Cash provided by financing activities $70000

Explanation / Answer

Cash provided by investing activities = Cash received from sale of plant assets - Loss on sale of plant assets = 26000 - 15000 = 11000 Cash provided by financing activities = Cash received from issuing stock = 70000 ANS: A. Cash provided by investing activities $11000 Cash provided by financing activities $70000

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