The following information is from the noncurrent asset portion of Randle Company's balance sheet.
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text { December } 31$
$\begin{array}{lcccc}
&2017&2016\
\text { Property, plant, and equipment } & \$ 140,000 & \$ 125,000 & \
\text { Accumulated depreciation } & (69,500) & (57,000) \
\text { Long-term investments } & 27,000 & 15,000 &
\end{array}$

The following activities occurred during 2017:
Sold equipment with an original cost of $8,000 and a book value of $2,500 for $2,000 cash.
Depreciation expense for the year totaled $18,000.
Purchased property for $23,000 cash.
Purchased long-term investments for $12,000 cash.
What is the amount of cash used by investing activities?
A)$27,000
B)$51,000
C)$33,000
D)$14,500
E)None of the answer choices is correct.

Question

The following information is from the noncurrent asset portion of Randle Company's balance sheet.
 $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text { December } 31$
$\begin{array}{lcccc}
&2017&2016\
\text { Property, plant, and equipment } & \$ 140,000 & \$ 125,000 & \
\text { Accumulated depreciation } &  (69,500)  & (57,000) \
\text { Long-term investments } & 27,000  & 15,000 &
\end{array}$
 
The following activities occurred during 2017:
Sold equipment with an original cost of $8,000 and a book value of $2,500 for $2,000 cash.
 Depreciation expense for the year totaled $18,000.
 Purchased property for $23,000 cash.
 Purchased long-term investments for $12,000 cash.
What is the amount of cash used by investing activities?
A)$27,000
B)$51,000 
C)$33,000
D)$14,500
E)None of the answer choices is correct.

Quizplus · Accepted Answer

Cash used by investing activities is determined by looking at any cash inflows or outflows related to the acquisition or disposal of long-term assets or investments. From the information provided, the company sold equipment for $2,000 and purchased property and long-term investments for a total of $35,000 ($23,000 + $12,000). Therefore, the net cash used by investing activities is $33,000 ($2,000 - $35,000 = -$33,000), which is represented by choice letter C.

The Following Information Is from the Noncurrent Asset Portion of Randle