Cannedy Corporation\'s most recent balance sheet appears below: $402 $373 $402 $

Question

Cannedy Corporation's most recent balance sheet appears below:
  

$402

$373

$402

$373

  
The company's net income for the year was $77 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $18. The net cash provided by (used in) investing activities for the year was:

Ending Balance Beginning Balance   Assets:   Cash and cash equivalents $33 $27   Accounts receivable 45 54   Inventory 70 73   Property, plant and equipment 542 486   Less accumulated depreciation 288 267   Total assets

$402

$373

  Liabilities and stockholder's equity:   Accounts payable $32 $37   Accrued liabilities 18 24   Income taxes payable 35 38   Bonds payable 87 107   Common stock 71 67   Retained earnings 159 100   Total liabilities and stockholder's equity

$402

$373

Explanation / Answer

Beginning Value of Plant property and equipment = 486

Less Depreciation for the year = 288-267 = 21

Book Value at the end of the year (Should be) = 465

Ending Value of plant propert and equipmrnt = 542

Additions during the year = 542-465 = $77

Therefore, the net cash used in the investing activity is $77.

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