Avatar Company Uses the Indirect Method to Prepare Its Statement

question 140

Multiple Choice

Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following portion of the comparative balance sheet: Additional information provided:
What was the net amount of Cash from investing activities?

• A)$30,000 negative
• B)$60,000 positive
• C)$52,000 negative
• D)$38,000 negative

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Definitions:

Shares

Units of ownership in a corporation or financial asset that represent an equal proportion of its capital.

Benefit

An advantage, profit, or gain received or enjoyed by an individual or entity, often as a result of a contract, employment, or other agreement.

Promoter

An individual or company who takes initiative to organize, finance, or promote and start up a new business venture or event.

Agent

An individual authorized to act on behalf of another, known as the principal, in dealings with third parties.