COMPUTING NET CASH FLOW FROM INVESTING ACTIVITIES Davis Inc. reported the following information for equipment:

12/31/2009 12/31/2008 Equipment $160,000 $115,000 Accumulated depreciation (85,000) (59,000)

Long-term investment 10,000 14,600 In addition, Davis sold equipment costing $10,000 with accumulated depreciation of

$8,000 for $2,200 cash, producing a $200 gain. Davis reported net income for 2009 of

$110,000.

Required:

Compute net cash flow from investing activities.

Cornerstone Exercise