Walmouth Corporation's Comparative Balance Sheet and Income Statement for Last

question 13

Multiple Choice

Walmouth Corporation's comparative balance sheet and income statement for last year appear below:
The company declared and paid a cash dividend of $54,000 during the year. It did not purchase or dispose of any property, plant, and equipment. It did not issue any bonds or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.
-The net cash provided by (used in) investing activities last year was:

• A) $30,000
• B) $(30,000)
• C) $(40,000)
• D) $40,000

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Definitions:

Fund Replenishing

The process of restoring the balance of a fund to its original level or to a desired level after it has been depleted.

Fund Shortages

A situation where the available financial resources are insufficient to cover the expected or required expenses.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates.

Money Market Accounts

Savings accounts that typically offer higher interest rates, with the balance usually accessible through checks or electronic transfers.