Karr Inc. reported net income of $300,000 for 2017. Changes occurred in several balance sheet accounts as follows:
Equipment................................$25,000 increase
Accumulated depreciation...............40,000 increase
Note payable..............................30,000 increase
Additional Information:
1. During 2017, Karr sold equipment that cost $25,000 and had accumulated depreciation of $12,000, for a gain of $5,000.
2. In December 2017, Karr purchased equipment costing $50,000 with $20,000 cash and a 12% note payable of $30,000.
3. Depreciation expense for the year was $52,000.
Required:
1. In Karr's 2017 statement of cash flows, what should be the net cash from operating activities?
2. In Karr's 2017 statement of cash flows, what should be the net cash used in investing activities?