Cinders Inc,reported net income of $50,000 and loss on sale of plant assets of $15,000.The cash received from the sale of plant assets was $45,000.Cinders also issued additional shares of stock for $25,000 and paid dividends of $4,500.Calculate the increase or decrease in cash from investing activities.
A) ($15,000).
B) $60,000.
C) $45,000.
D) $40,500.

Question

Quizplus · Accepted Answer

The increase or decrease in cash from investing activities is determined by subtracting the cash inflows from the cash outflows related to investing activities. In this case, the only cash inflow related to investing activities is the sale of plant assets for $45,000. There were no other cash outflows or inflows related to investing activities mentioned in the question. Therefore, the increase or decrease in cash from investing activities is $45,000.

Cinders Inc,reported Net Income of $50,000 and Loss on Sale