Connecticut, Inc. uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the compar
ative balance sheet: Connecticut, Inc. Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Increase / (Decrease) Cash Accounts Receivable () Merchandise Inventory Plant and Equipment Accumulated DepreciationPlant and Equipment () () () Total Assets Additional information provided by the company includes the following: 1. Equipment was purchased for with cash. 2. Equipment with a cost of and accumulated depreciation of was sold for . What was the amount of net cash provided by (used for) investing activities?
1 answer:
Answer:
Net cash used by investing activities -$16,000
Explanation:
The computation of the amount of net cash provided or used by investing activities is shown below:
Equipment purchase for cash -$66,000
Proceeds from the sale of equipment $50,000
Net cash used by investing activities -$16,000
The purchase is a cash outflow so it is in negative sign while the sale is cash inflow so it is to be shown in a positive sign
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Answer: B. $892.1 million
Explanation:
The Revenue was $939,393 million
When calculating how much cash was generated any increase to the Accounts Receivables is removed from the revenue because it signifies that more sales were made on credit and so have not given the business cash yet.
Any increase in Deferred Revenue must be added because this is Cash that has been given to the business but for accrual purposes cannot be recognized yet. Bottomline however, the Cash has been received.
Increase in Receivables = 309,196 - 221,504
= $87,692 million
Increase in Deferred Revenue= 374,730 - 334,358
= $40,372 million
The Cash generated is therefore;
= 939,393 - 87,692 + 40,372
= $892,073
= $892.1 million
I have attached the Financial Statements of Acme Corporation.
