Cash Flows from Investing Activities During the year, Hayashi, Inc. sold equipment with a book value of $125,000 for $175,000 (original purchase cost of $225,000). New equipment was purchased. Hayashi provided the following comparative balance sheets: Hayashi, Inc. Comparative Balance Sheets At December 31, 20x1 and 20x2 20x120x2 Long-Term Assets Plant and equipment $1,000,000 $1,025,000 Accumulated depreciation (500,000) (525,000) Land 500,000 731,750 Required: Calculate the investing cash flows for the current year. Use a minus sign to indicate a cash outflow. $ -75,000 x Feedback Check My Work Investing activities include the purchase and sale of long-term assets. The sale amount is given and the purchase price of new equipment is inferred from the comparative balance sheet information as well as the information about the original cost of the equipment that was sold and removed from the books. The purchase price of the new equipment can be computed: Ending Balance Plant and Equipment + Original Cost of Equipment Sold - Beginning Balance - Purchase of Equipment. The investing cash flow is the sum of the cash received from the sale of equipment less the cash paid to purchase new equipment and land. Review the "How to Compute Investing Cash Flows" in the text