Karr, Inc., reported net income of $300,000 for 2017. Changes occurred in several balance sheet accounts as
Question:
Karr, Inc., reported net income of $300,000 for 2017. Changes occurred in several balance sheet accounts as follows:
Additional Information:
a. During 2017, Karr sold equipment costing $25,000, with accumulated depreciation of $12,000, for a gain of $5,000.
b. In December 2017, Karr purchased equipment costing $50,000, with $20,000 cash and a 12% note payable of $30,000.
c. Depreciation expense for the year was $52,000.
Required:
1. Calculate net cash provided by operating activities in Karr's 2017 statement of cash flows.
2. Calculate net cash used in investing activities in Karr's 2017 statement of cash flows.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Requirements 1 and 2 Cash flow from operations and investing activities ...View the full answer
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
