Alkine Company's comparative balance sheet appears below: Alkine reported the following net income for the year: Dividends were declared and paid during the year. A gain of $8,000 was recorded on the sale of the long-term investments. The company did not purchase any long-term investments or dispose of any property, plant, and equipment during the year. It also did not issue any bonds payable or repurchase any of its own common stock.
-The net cash provided (used)by investing activities would be:
A)$10,000
B)$(2,000)
C)$22,000
D)$1,000

Question

Alkine Company's comparative balance sheet appears below:  Alkine reported the following net income for the year:  Dividends were declared and paid during the year. A gain of $8,000 was recorded on the sale of the long-term investments. The company did not purchase any long-term investments or dispose of any property, plant, and equipment during the year. It also did not issue any bonds payable or repurchase any of its own common stock.
-The net cash provided (used)by investing activities would be:
A)$10,000 
B)$(2,000) 
C)$22,000 
D)$1,000

Quizplus · Accepted Answer

The net cash provided (used) by investing activities is typically calculated by subtracting cash outflows from cash inflows related to investments. The negative sign indicates a net cash outflow of $2,000.

Alkine Company's Comparative Balance Sheet Appears Below: Alkine Reported