During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the companys accounting records: From the Income Statement Depreciation expense $ 1,020 Loss on sale of equipment 3,200 From the Balance Sheet Beginning equipment 20,400 Ending equipment 11,400 Beginning accumulated depreciation 1,990 Ending accumulated depreciation 1,840

Required: 1. For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale. (Use the equipment and accumulated depreciation T-accounts to infer the book value of the equipment sold.) Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement.

What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Operating Activities? What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing Activities? (Input the amount as positive value.)