Question
Chandler Company's net income last year was $98,000 and cash dividends declared and paid to the company stockholders was $13,000. Changes in selected balance sheet
Chandler Company's net income last year was $98,000 and cash dividends declared and paid to the company stockholders was $13,000. Changes in selected balance sheet accounts for the year appear below:
Increases(Decreases)Debit balances: Cash$ (3,000) Accounts receivable1,000 Inventory(1,000) Prepaid expenses13,000 Long-term investments70,000 Plant and equipment45,000
Credit balances: Accumulated depreciation61,000 Accounts payable(11,000) Accrued liabilities(9,000) Taxes payable9,000 Bonds payable(50,000) Common stock40,000 Retained earnings85,000
The net cash flows from investing activities to be reported in a statement of cash flows is:
a.$(75,000).
b.$(115,000).
c.$75,000.
d.$115,000.
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