An Analysis of Changes in Selected Statement of Financial Position

question 46

Multiple Choice

An analysis of changes in selected statement of financial position accounts of Hierarchy Corporation shows the following for the current year:
$\begin{array} { | c | l | } \hline \text { Property, Plant, and Equipment accounts: } & \\\hline \text { Debit entries to asset accounts } & \$ 504,000 \\\hline \text { Credit entries to asset accounts } & \$ 768,000 \\\hline \begin{array} { c } \text { Debit entries to accumulated depreciation accounts } \\\text { (resulting from sale of PPE assets) }\end{array} & \$ 72,000 \\\hline \begin{array} { c } \text { Credit entries to accumulated depreciation accounts } \\\text { (representing depreciation for the current year) }\end{array} & \$ 192,000 \\\hline\end{array}$ Hierarchy's income statement for the current year includes a $9,600 gain on disposal of property, plant, and equipment. All payments and proceeds relating to purchase or sale of property, plant, and equipment were in cash.

-Based solely on the data provided above, Hierarchy's net cash from investing activities for the current year is:

• A) $264,000 net cash from investing activities.
• B) $264,000 net cash used in investing activities.
• C) $201,600 net cash from investing activities.
• D) $1,200,000 net cash from investing activities.

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Definitions:

Noun Clause

A subordinate clause that functions as a noun within a larger sentence.

Noun Clause

A subordinate clause that functions as a noun within a sentence, acting as a subject, object, or complement.

Direct Object

The noun or noun phrase that receives the action of a transitive verb in a sentence.

Restrictive Clause

A part of a sentence that limits or specifies the meaning of its subject and is essential to its structure, often introduced by "that," "who," or "which."