Question
Cornerstone Exercise 11-20 (Algorithmic) Determining Net Cash Flow from Investing Activities Davis Inc. reported the following information: 12/31/2019 12/31/2018 Equipment $160,000 $115,000 Accumulated depreciation (85,000)
Cornerstone Exercise 11-20 (Algorithmic) Determining Net Cash Flow from Investing Activities
Davis Inc. reported the following information:
| 12/31/2019 | 12/31/2018 | |||
| Equipment | $160,000 | $115,000 | ||
| Accumulated depreciation | (85,000) | (59,000) | ||
| Investment (long-term) | 18,610 | 10,000 | ||
In addition, Davis sold equipment costing $12,500 with accumulated depreciation of $8,550 for $2,240 cash, producing a $1,710 loss. Davis reported net income for 2019 of $122,350.
Required:
Compute net cash flow from investing activities. Use a minus sign to indicate negative cash flows (outflows).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
CLEP Financial Accounting Study Guide
Authors: Passyourclass
1st Edition
1614330115, 978-1614330110
