Connecticut, Inc. uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet: Connecticut, Inc. Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Increase / (Decrease) Cash Accounts Receivable () Merchandise Inventory Plant and Equipment Accumulated DepreciationPlant and Equipment () () () Total Assets Additional information provided by the company includes the following: 1. Equipment was purchased for with cash. 2. Equipment with a cost of and accumulated depreciation of was sold for . What was the amount of net cash provided by (used for) investing activities?

Net cash used by investing activities  -$16,000

Explanation:

The computation of the amount of net cash provided or used by investing activities is shown below:

Equipment purchase for cash            -$66,000  

Proceeds from the sale of equipment $50,000  

Net cash used by investing activities  -$16,000

The purchase is a cash outflow so it is in negative sign while the sale is cash inflow so it is to be shown in a positive sign

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