Christopher Bozine, Inc. reported net income of $44,000 for the year ended Decem

Question

Christopher Bozine, Inc. reported net income of $44,000 for the year ended December 31, 2016 Included in net income were depreciation expense of $8,400 and a gain on sale of equipment of $1,700. The equipment had an historical cost of $40,000 and accumulated depreciation of $24,000. Each of the following accounts increased during 2016:  
Patents                                       $5,500
Prepaid rent                               $6,800
Available-for-sale securities       $2,000
Bonds payable                           $5,000

What is the amount of cash provided by or used by investing activities for Bozine Inc. for the year ended December 31, 2015?

Explanation / Answer

Cash flows from Investing Activities: Sale of Equipment (40,000-24000 +1700) 17700 Purchase of Available for sale securities -2000 Patents acquired -5500 Net cash provided from Investing activities 10,200 Note: Bonds issuance, Net income, prepaid rent are not part of investing activities

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