Question
Rodriguez Inc uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet: Rodriquez Inc.
Rodriguez Inc uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet:
Rodriquez Inc. Comparative Balance Sheet December 31, 2014 and 2013
2014 2013 Increase/decrease
Cash $21,000 $18,000 $3,000
Accounts Receivable 31,000 35,000 (4,000)
Inventory 53,000 25,000 28,000
Plant and Equipment 123,000 90,000 33,000
Accumulated Depreciation- Plant and Equipment (43,000) (40,000) (3,000)
Total assets $228,000 $168,000 $60,000
Additional information provided by the company includes the following:
1) Equipment costing $65,000 was purchased for cash.
2) Equipment with a cost of $32,000 and accumulated depreciation of $7,000 was sold for $45,000.
What was the amount of net cash provided by (used for) investing activities? A) $120,000 B) $20,000 C) $(120,000) D) $(20,000)
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