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 $8,750 for $2,280 cash, producing a $1,470 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).
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Principles Of Auditing: An International Perspective
Authors: Rick Stephan Hayes, Philip Wallage, Arnold Schilder, Roger Dassen
1st Edition
0077095324, 978-0077095321
