The most recent balance sheet and income statement of Teramoto Corporation appear below: Cash dividends were $18.
-The net cash provided by (used by) investing activities for the year was:
A) $77
B) ($92)
C) $92
D) ($77)

Question

The most recent balance sheet and income statement of Teramoto Corporation appear below:   Cash dividends were $18.
-The net cash provided by (used by) investing activities for the year was:
A) $77 
B) ($92) 
C) $92 
D) ($77)

Quizplus · Accepted Answer

To determine the net cash provided by (used by) investing activities, we need to analyze the information provided in the balance sheet. 
We can see that in the current year, Teramoto Corporation had a decrease in the value of investments of $39 and an increase in property, plant and equipment of $53. 
Therefore, the net cash provided by investing activities would be: 
($39) + $53 = $14 
This means that Teramoto Corporation invested more in capital expenditures than in non-current assets, resulting in a net cash outflow. 
Since there were cash dividends paid of $18, this results in a net cash outflow of ($92), which is option B.

The Most Recent Balance Sheet and Income Statement of Teramoto