Caloulator eBook Purchase and Disposal of Operating Asset and Effects on Statement of Cash Flows On January 1, 2017, Castlewood Company purchased machinery for its production line for $104,000. Using an estimated us residual value of $8,000, the annual straight-line depreciation of the machinery was calculated to be $12,00 and 2018, but then decided to automate its production new, fully automated machinery for $205,000. Required process. On December 31, 2018, Castlewood sold the machinery at a loss of $5,000 and purchase How would the previous transactions be presented on Castlewood's statements of cash flows for the years ended December 31, 2017 and 20187 Use the minus sign to indicate cash outflows. would the previous transactions be presented on Castlewood's statements of cash flows for the years ended December 31, 2017 and 2018? Use 1. How the minus sign to indicate cash outflows. Castlewood Company Statements of Cash Flows For the Years Ended December 31, 2017 and 2018 Partial statement of cash flows for 2017: Cash flows from operating activities: Net income sxx,xox Cash flows from investing activities: Partial statement of cash flows for 2018: Cash flows from operating activities: Net income $xx,x00x Cash flows from investidg activities: 2. Catlowood would replsce machinery i the replacement woud resut n in the future. Replacing machinery might be an option if Or if in production capacity. Check My Work3 more Check My Work unses remaining Next Previous 3 more Check My Work uses remaining