Kania Corporation\'s most recent balance sheet appears below: The net income for

Question

Kania Corporation's most recent balance sheet appears below:

  

The net income for the year was $171. Cash dividends were $44. The net cash provided by (used by) investing activities for the year was:
A. ($91)
B. ($139)
C. $91
D. $139

Comparative Balance Sheet Ending Balance Beginning Balance Assets:    Cash and cash equivalents $28 $25    Accounts receivalbe 80 77    Inventory 35 40    Plant and equipment 639 500    Less accumulated depreciation 347 299 Total assets $435 $343 Liabilities and stockholders' equity    Accounts payable $54 $56    Wages payable 20 23    Taxes payable 24 21    Bonds payable 106 140    Deferred taxes 19 22    Common stock 74 70    Retained earnings 138 11 Total liabilities and stockholders' equity $435 $343

Explanation / Answer

The only investing activity was the purchase of plant and equipment.

Thus, cash used = 500 - 639 = -139

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