Team Shirts,Inc.had net cash from operating activities of $50,000.It paid $40,000 to buy a new computer system by signing a $30,000 note and paying the balance.Net cash from (or used for)investing activities for the period was ________.
A)$(40,000)
B)$(10,000)
C)$40,000
D)$10,000

Question

Quizplus · Accepted Answer

The company paid $40,000 to buy a new computer system, but only $30,000 was paid in cash, while the remaining $10,000 was financed through a note. Therefore, the net cash used for investing activities is $10,000 ($40,000 total investment minus $30,000 cash payment).