Silken Corp. reported net income of $420,000 for 2014. Changes occurred in several balance sheet accounts as follows:
Equipment ................................. $35,000 increase
Accumulated depreciation .................. 56,000 increase
Note payable .............................. 42,000 increase
Additional information:
· During 2014, Silken sold equipment costing $35,000, with accumulated depreciation of $16,800, for a gain of $7,000.
· In December 2014, Silken purchased equipment costing $70,000 with $28,000 cash and a 12% note payable of $42,000.
· Depreciation expense for the year was $72,800. In Silken's 2014 statement of cash flows, net cash used in investing activities should be
a.$30,800.
b.$16,800.
c.$2,800.
d.$49,000.