Garrett Company had the following activities for a recent year ended December 31: Sold land that cost $32,000 for $32,000 cash; purchased $190,000 of equipment, paying $160,000 in cash and signing a note payable for the rest; and recorded $6,700 in depreciation expense for the year. Net income for the year was $13,000. Compute (1) cash provided by operating activities and (2) cash used in investing activities for the year based on the data provided. (List cash outflows as negative amounts.) GARRETT COMPANY Excerpts from Statement of Cash Flows For the Year Ended December 31 Cash flows from operating activities: Net income Add back: Depreciation expense Cash flows from investing activities: Purchase of equipment Sale of land $ 13,000 6,700 19,700 (160,000) 32,000 $ (128,000)

Garrett Company had the following activities for a recent year ended December 31: Sold land that cost $32,000 for $32,000 cash; purchased $190,000 of equipment, paying $160,000 in cash and signing a note payable for the rest; and recorded $6,700 in depreciation expense for the year. Net income for the year was $13,000. Compute (1) cash provided by operating activities and (2) cash used in investing activities for the year based on the data provided. (List cash outflows as negative amounts.) GARRETT COMPANY Excerpts from Statement of Cash Flows For the Year Ended December 31 Cash flows from operating activities: Net income Add back: Depreciation expense Cash flows from investing activities: Purchase of equipment Sale of land $ 13,000 6,700 19,700 (160,000) 32,000 $ (128,000)

Name: Garrett Company had the following activities for a recent year ended
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Description: Garrett Company had the following activities for a recent year ended December 31: Sold land that cost $32,000 for$32,000 cash; purchased $190,000 of equipment, paying $160,000 in cash and signing a note payable for the rest; andrecorded $6,700 in de

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 9E: Net Cash Flow from Operating Activities The following are accounting items taken from Tyrone...

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