The following events occurred last year at Dorder Corporation:   Purchase of plant and equipment $20,000   Sale of long-term investment $8,000   Dividends...

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Accounting

The following events occurred last year at DorderCorporation:

  Purchase of plant and equipment

$20,000

  Sale of long-term investment

$8,000

  Dividends received on long-term investments

$5,000

  Paid off bonds payable

$11,000

  Depreciation expense

$6,500

Based on the above information, the cash provided (used) byinvesting activities for the year on the statement of cash flowswould net to:

$(11,000)

$(12,000)

$(24,500)

$(6,500)

Last year Burch Corporation's cash account decreased by $16,000.Net cash provided by investing activities was $7,100. Net cash usedin financing activities was $14,000. On the statement of cashflows, the net cash flow provided by (used in) operating activitieswas:

$6,900

$(16,000)

$(9,100)

$(22,900)

McCorey Corporation recorded the following events last year:

  Repurchase by the company of its own commonstock

$39,000

  Sale of long-term investment

$58,000

  Interest paid to lenders  

$14,500

  Dividends paid to the company's shareholders

$68,000

  Collection by McCorey of a loan made to anothercompany

$44,000

  Payment of taxes to governmental bodies

$24,500

On the statement of cash flows, some of these events areclassified as operating activities, some are classified asinvesting activities, and some are classified as financingactivities.

Based solely on the information above, the net cash provided by(used in) investing activities on the statement of cash flows wouldbe:

$102,000

$(9,500)

$34,000

$(19,500)

Financial statements of Rukavina Corporation follow:

Rukavina Corporation
Comparative Balance Sheet

Ending
Balance

Beginning
Balance

  Assets:

  Cash and cash equivalents

$24      

$21      

  Accounts receivable

77      

72      

  Inventory

33      

31      

  Property, plant and equipment

528      

480      

  Less: accumulated depreciation

326      

299      

  Total assets

$336      

$305      

  Liabilities and stockholders'equity:

  Accounts payable

$42      

$52      

  Bonds payable

95      

110      

  Common stock

71      

72      

  Retained earnings

128      

71      

  Total liabilities and stockholders' equity

$336      

$305      

  Income Statement

  Sales

$705

  Cost of goods sold

448

  Gross margin

257

  Selling and administrative expenses

151

  Net operating income

106

  Income taxes

38

  Net income

$68

Cash dividends were $11. The company did not dispose of anyproperty, plant, and equipment. It did not issue any bonds payableor repurchase any of its own common stock. The following questionspertain to the company's statement of cash flows.

The net cash provided by (used in) investing activities for theyear was:

$1

$(11)

$(15)

$(48)

Answer & Explanation Solved by verified expert
4.5 Ratings (967 Votes)
1Net cash used provided by investing activities Dorder corporation Purchase of plant and equipment 20000 Sale of long term investment 8000 Net cash used in investing activities 12000 So correct option is 12000 2Net cash flow provided by used in    See Answer
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