Rodriguez Inc uses the indirect method to prepare its statement of cash flows. R

ID: 2453072 • Letter: R

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. 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)

The amount of net cash provided by (used for) investing activities is $20,000.

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