Given the Following Information,determine the Amount of Cash Flows from Investing

question 71

Multiple Choice

Given the following information,determine the amount of cash flows from investing and financing activities.
$$\begin{array} { | l | r | } \hline \text { Net income } & \$ 50,000 \\\hline \text { Loss on sale of plant assets } & 15,000 \\\hline \text { Cash received from sale of plant assets } & 26,000 \\\hline \text { Cash received from issuine stock } & 70,000 \\\hline \text { Increase in income taxes payable } & 120,000\\\hline \end{array}$$

• A)
• Cash provided by investing activities, \(\$ 11,000\)
• Cash provided by financing activities, \(\$ 70,000\)
• B)
• Cash used by investirg activities, \(\$ 11,000\)
• Cash used by Financing activities, \(\$ 70,000\)
• C)
• Cash provided by investirg activities, \(\$ 26,000\)
• Cash provided by financing activities, \(\$ 55,000\)
• D)
• Cash used by investing activities, \(\$ 26,000\)
• Cash used by Financing activities, \(\$ 55,000\)
• E)
• Cash provided by investing activities, \(\$ 26,000\)
• Cash provided by financing activities, \(\$ 70,000\)

---

Definitions:

Balance Sheet

A financial outline showing the holdings, debts, and the portion belonging to shareholders of a company on a certain date.

Adjustment

Modifications made to financial records to correct errors, align with accounting standards, or reflect changes due to transactions or events.

Fixed Assets

Long-term tangible assets that a firm owns and uses in the production of its income and is not expected to be converted into cash in the short term, such as buildings, machinery, and land.

Depreciation

A method in accounting that spreads the expense of a tangible asset across its lifespan.