Use the following information for questions.
Malcolm Corp.'s statements of financial position at December 31, 2017 and 2016 and information relating to 2017 activities are presented below: Other information relating to 2017 activities:
-The cash used in investing activities in 2017 was
A)$580,000.
B)$455,000.
C)$430,000.
D)$420,000.

Question

Use the following information for questions.
Malcolm Corp.'s statements of financial position at December 31, 2017 and 2016 and information relating to 2017 activities are presented below:  Other information relating to 2017 activities:
-The cash used in investing activities in 2017 was
A)$580,000. 
B)$455,000. 
C)$430,000. 
D)$420,000.

Quizplus · Accepted Answer

The cash used in investing activities in 2017 was $580,000. This is calculated by taking the net change in cash and cash equivalents from investing activities, which is $455,000, and adding back the depreciation and amortization expense, which is $125,000.

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