Question

Connecticut, Inc. uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet: Connecticut, Inc. Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Increase/(Decrease) Cash $25,000 $22,000 $3000 Accounts Receivable 31,000 38,000 (7000) Merchandise Inventory 55,000 26,000 29,000 Plant and Equipment 124,000 93,000 31,000 Accumulated Depreciation-Plant and Equipment (47,000) (43,000) (4000) Total Assets $188,000 $136,000 $52,000 Additional information provided by the company includes the following: Equipment was purchased for $67,000 with cash. Equipment with a cost of $36,000 and accumulated depreciation of $7300 was sold for $48,000. What was the amount of net cash provided by (used for) investing activities?

Answer 1

cash used for investing activities 19,000

Step-by-step explanation:

The indirect mehtod impact the calculations for operating activities.

The investing and financing activities balance will be the same on both method.

Investing activities: purchase and sale of long term assets and securities trading:

proceeds from sale of equipment 48,000

purchase of equipment (67,000)

cash used for investing activities 19,000