Question

12 Rodriguez Inc. uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet 53.000 Rodriguez Inc. Comparative Balance Sheet December 31, 2014 and 2013 2014 2013 Increase decrease Cash $21,000 $18,000 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: • Equipment costing $65,000 was purchased for cash. 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?

Answer 1

12. The amount of net cash provided by (used for) investing activities: -$20,000 Workings: Cash flows from investing activities Sale of equipment Purchase of equipment Net cash provided by (used for investing activities $45.000 -$65.000 -$20,000 13. The dividends declared during the year 2014 | $24,000 Workings: Declared of dividends: Retained earnings, 2013 Add: Net Income Less: Retained earnings, 2014 $89.000 $89.000 $154,000 $24.000