Hirshberg Corporation's comparative balance sheet appears below:

The company's net income (loss) for the year was $11,000 and its cash dividends were $4,000. It did not sell or retire any property, plant, and equipment during the year.
-The company's net cash used in investing activities is:
A)$6,000
B)$54,000
C)$24,000
D)$44,000

Question

Hirshberg Corporation's comparative balance sheet appears below:

The company's net income (loss) for the year was $11,000 and its cash dividends were $4,000. It did not sell or retire any property, plant, and equipment during the year.
-The company's net cash used in investing activities is:
A)$6,000 
B)$54,000 
C)$24,000 
D)$44,000

Quizplus · Accepted Answer

The company's net cash used in investing activities is calculated by subtracting the cash inflow from the cash outflow. From the statement of cash flows, we can see that the total cash outflow for investing activities is $30,000 (purchase of property, plant, and equipment) and the cash inflow is $6,000 (sale of long-term investments). Therefore, the net cash used in investing activities is $24,000 (30,000 - 6,000). The correct choice is C.

Hirshberg Corporation's Comparative Balance Sheet Appears Below