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how to calculate net cash flow provided by investing activities

Question

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

Dooling Corporation
Comparative Balance Sheet

 

Ending
Balance

Beginning
Balance

Assets:

   

Cash and cash equivalents

$ 40

$ 41

Accounts receivable

73

72

Inventory

52

50

Property, plant and equipment

592

505

Less: accumulated depreciation

239

272

Total assets

$518

$396

Liabilities and stockholders' equity:

   

Accounts payable

$ 47

$ 51

Accrued liabilities

24

23

Income taxes payable

52

56

Bonds payable

101

95

Common stock

76

75

Retained earnings

218

96

Total liabilities and stockholders' equity

$518

$396

 

Income Statement

Sales

$810

Cost of goods sold

481

Gross margin

329

Selling and administrative expenses

146

Net operating income

183

Gain on sale of plant and equipment

21

Income before taxes

204

Income taxes

61

Net income

$ 143

 Cash dividends were $21. The company sold equipment for $39 that was originally purchased for $21 and that had accumulated depreciation of $3. The net cash   

 provided by (used in) investing activities for the year was:

 a. $(108)

 b. $69

 c. $39

 d. $(69)

 

 

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