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. 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
Complete the following Spreadsheet for the preparation of statement of cash flows under the indirect method. (The statement of cash flows is not required.) (Enter all amounts as positive values.) Additional information: a. Net income for the year was $105,000. b. Dividends of $90,000 cash were declared and paid. c. The only noncash expense was $75,000 of depreciation. d. Purchased plant assets for $95,000 cash. e. Notes payable of $25,000 were issued for $25,000 cash. f. $55,000 increase in accounts receivable. g. $35,000 decrease in inventory. h. $15,000 decrease in accounts payable. Balance Sheet-Debit Balance Accounts Cash Accounts receivable Inventory Plant assets Balance Sheet-Credit Balance Accounts Accumulated depreciation Accounts payable Notes payable Common stock Retained earnings Statement of Cash Flows Operating activities SCORETECK CORPORATION Spreadsheet for Statement of Cash Flows-Indirect Method For Year Ended December 31, 2021 Investing activities Financing activities…
Starry Company purchased equipment by borrowing money from a bank for $50,000. Which of the following would reflect this transaction? a. It would decrease liabilities by $50,000 b. It would decrease retained earnings by $50,000 c. It would increase assets by $50,000 d. It would decrease cash by $50,000
Please don't provide answer in image format thank you. Gerry Company has a gross profit of $900,000 and depreciation expense of $360,000. Selling and administrative expense is $122,000. Given that the ax rate is 43 percent, compute the cash flow from operations for Gerry Company
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Garcia Co. owns equipment that costs $78,300, with accumulated depreciation of $42,800. Garcia sells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts: A. $47,000 cash B. $35,500 cash C. $28,000 cash If an amount box does not require an entry, leave it blank. А. III III IIII B. C.
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Patterson Company’s Depreciation Expense is $20,400 and the beginning and ending Accumulated Depreciation balances are $150,200 and $155,200, respectively. What is the cash paid for depreciation?
Land costing $40,631 was sold for $79,720 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?
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
Wildhorse Company reported a loss of $1586 for the sale of equipment for cash. The equipment had a cost of $39040 and accumulated depreciation of $35990. How much will Wildhorse report in the cash flows from investing activities section of its statement of cash flows?
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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