The Travis Company uses the spreadsheet method for completing the statement of cash flows. The balance sheet accounts and other information related to those accounts are presented below for Travis Company:
December 31
assets 2020 2019
cash $140,000 $100,000
accounts receivable, net 200,000 240,000
inventory 160,000 140,000
long-term investment 60,000 150,000
plant assets 500,000 450,000
accumulated depreciation (300,000) (290,000)
patents 8,000 10,000
total assets $768,000 $800,0000
equities
accounts payable $100,000 $80,000
bonds payable, due 2020 180,000 240,000
common stock, $10 par 200,000 160,000
additional paid in capital 160,000 140,000
retained earnings 128,000 180,000
total equities $768,00 $800,000
Additional information related to 2020 activities:
1. Net loss for 2020 was $40,000.
2. Cash dividends of $12,000 were declared and paid in 2020 .
3. 4,000 shares of common stock were issued to bondholders converting bonds payable into common stock.
4. A long-term investment was sold for $100,000cash.
5. Equipment costing $100,000 and having accumulated depreciation of $30,000 was sold for $50,000 cash.
Net cash provided (used) in the investing activities section of Travis's 2020 statement of cash flows was
a. $(50,000)
b. $0
c. $(150,000)
d. $150,000