Swiss Inc. had the following activities during 1996:
Acquired 2,000 shares of stock in Molly Inc. for $26,000.
Sold an investment in General Motors for $35,000 when the carrying value was $33,000.
Acquired a $50,000, 4-year certificate of deposit from a bank. (During the year, interest of $3,750 was paid to Swiss.)
Collected dividends of $1,200 on stock investments.
In Swiss's 1996 statement of cash flows, net cash used in investing activities should be ________.
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A. B. C. D. E.C
Investing activities include the acquisition and disposal of all long-term assets. Thus, the purchase of shares, sale of shares held as an investment, acquisition of long-term certificate of deposit (not a cash equivalent since long-term) are classified as investing activities and total $41,000 used (-$26,000 +35,000 - 50,000).
The receipts of dividends and interest are cash flows from operating activities.