Indicate the effect each separate transaction has on investing cash flows. (Amounts to be deducted should be indicated with a minussign.)a. Sold a truck costing $47,000, with $24,800 of accumulated depreciation, for $10,800 cash. The sale results in a $11,400 loss.b. Sold a machine costing $13,400, with $9,400 of accumulated depreciation, for $7,800 cash. The sale results in a $3,800 gain.c. Purchased stock investments for $23,000 cash. The purchaser believes the stock is worth at least $32,800.Cash flows from investing activities

Cash flows from investing activities shows all cash inflows and cash outflows related to purchase…

Answered: Indicate the effect each separate…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A building with a book value of $46,349 is sold for $61,396 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as an increase of a. $46,349 in the investing activities section and an addition of $15,047 to net income in the operating activities section b. $61,396 in the investing activities section and a deduction of $15,047 from net income in the operating activities section c. $46,349 in the investing activities section d. $61,396 in the investing activities section
a. Equipment with a book value of $65,300 and an original cost of $133,000 was sold for $51,300. b. Paid $89,000 cash for a new truck. c. Sold land costing $154,000 for $198,000 cash. d. Long-term investments in stock were sold for $60,800 cash. Use the above information to determine cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from investing activities $ 0
AM. 37.
Kk.206.
Allen Company bought a new copy machine to be depreciated straight line for three years for use by sales personnel. Where would this purchase be reflected on the Statement of Cash Flows?
IZ Corporation purchased land for $425,000. Later in the year, the company sold a different piece of land with a book value of $225,000 for $270,000. How are the effects of these transactions reported on the statement of cash flows assuming the indirect method is used? Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank. Transactions Action Amount Gain on sale of land $fill in the blank 2 Cash received from sale of land $fill in the blank 4 Cash paid for purchase of land $fill in the blank 6
Cuevas Custom Cycles sold equipment for cash. The income statement shows a gain on the sale of $920. The net book value of the asset was $3,610. Which of the following statements describes the cash effect of the transaction? A positive cash flow of $2,690 from investing activities B positive cash flow of $4,530 from investing activities C negative cash flow of $2,690 from investing activities D negative cash flow of $4,530 from investing activities
Equipment with a book value of $78,500 and an original cost of $167,000 was sold at a loss of $36,000. Paid $118,000 cash for a new truck. Sold land costing $320,000 for $410,000 cash, yielding a gain of $ 90,000. Stock investments were sold for $96,300 cash, yielding a gain of $14,750. Use the above information to determine cash flows from investing activities.
Use the following information to determine cash flows from investing activities. a. Equipment with a book value of $65,300 and an original cost of $133,000 was sold at a loss of $14,000. b. Paid $89,000 cash for a new truck. c. Sold land costing $154,000 for $198,000 cash, yielding a gain of $44,000. d. Stock investments were sold for $60,800 cash, yielding a gain of $4,150.
Use the following company information to calculate net cash provided or used by investing activities. (a) Long-term investments were sold for $51,000 cash, yielding a gain of $22,150. (b) Paid $72,000 cash for new machinery. (c) Sold land costing $34,000 for $40,000 cash, yielding a $6,000 gain. (d) Equipment with a book value of $195,000 and an original cost of $320,000 was sold at a loss of $27,000. Statement of Cash Flows (partial) Cash flows from investing activities
The financial statements of Bait and Tackle are presented below. Prepare a statement of cash flows using both the direct and indirect method. Additional information: Operating expenses are composed of: Depreciation $12,000; Salaries $50,000; Loss on Sale of Equipment $9,000; other operating expenses $64,000. Other operating expenses are cash expenses. Equipment was purchased during the year for $135,000 cash. Equipment was sold for cash during the year. The original cost of the equipment was $60,000, and the accumulated depreciation was $45,000. Dividends were declared and paid during the year.
A building with a book value of $36,213 is sold for $60,055 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as an increase of a.$36,213 from investing activities b.$60,055 from investing activities and a deduction from net income of $23,842 c.$36,213 from investing activities and an addition to net income of $23,842 d.$60,055 from investing activities

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