Autry Corporation\'s balance sheet and income statement appear below: Cash divid

Question

Autry Corporation's balance sheet and income statement appear below:

Cash dividends were $19. The company sold equipment for $35 that was originally purchased for $19 and that had accumulated depreciation of $11. The net cash provided by (used in) investing activities for the year was:

Multiple Choice

$35

$(61)

$(96)

$61

Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 38 $ 39 Accounts receivable 71 70 Inventory 50 48 Total current assets 159 157 Property, plant, and equipment 572 495 Less accumulated depreciation 235 268 Net property, plant, and equipment 337 227 Total assets $ 496 $ 384 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 45 $ 49 Accrued liabilities 22 21 Income taxes payable 50 54 Total current liabilities 117 124 Bonds payable 91 85 Total liabilities 208 209 Stockholders’ equity: Common stock 66 65 Retained earnings 222 110 Total stockholders’ equity 288 175 Total liabilities and stockholders' equity $ 496 $ 384

Explanation / Answer

Net cash provided by (used in) investing activities = Cash Flow from Sale of Equipment - Purchase of Property, Plant & Equipment

Net cash provided by (used in) investing activities = 35 - 96
Net cash provided by (used in) investing activities = -61

$(61)

Explanation

Sale of Equipment = 35

Gross Book Value of Sold Asset = 19

Asset Purchase = Ending Gross PPE - (Beginning Gross PPE - Gross Book Value of Asset Sold)
Asset Purchase = 572 - (495 - 19)
Asset Purchase = 96

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