Christopher Ltd Is Preparing Its Cash Flow Statement Using the Indirect

question 48

Multiple Choice

Christopher Ltd is preparing its cash flow statement using the indirect method.It provides the following information about transactions for the year: Non-current assets,net-beginning balance: $111,000
Non-current assets,net-ending balance: $144,000
Equipment costing $67,000 was purchased for cash
Equipment with a net asset value of $12,000 was sold for $17,000
Depreciation expense of $19,000 was recorded during the year
What was the amount of net cash provided by (used for) investing activities?

• A)$(31,000)
• B)$(69,000)
• C)$50,000
• D)$(50,000)

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Definitions:

Inventories

Properties or goods meant for selling in regular business activities, under production for sale, or as resources and supplies for consumption during the production phase or while delivering services.

Step-Down Method

An accounting method used in cost allocation that sequentially allocates service department costs to other departments, including production ones.

Support Department

A division within an organization that provides essential services or support to the primary operations or profit centers.

Finishing Department

The section in manufacturing where products undergo final processing, assembly, or completion.