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Exercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3 [The following information applies to the questions displayed below.] The following accounts and corresponding
Exercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3 [The following information applies to the questions displayed below.] The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end balance sheets: Account Title Investment securities Machinery Land Year 2 5 101,800 520,300 145,800 Year 1 $ 116,900 425,000 93,800 Other Information drawn from the accounting records: 1. Delsey Incurred a $1,340 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $5,000 (cost of $25,530 minus accumulated depreciation of $20,530) was sold. The income statement showed a gain on the sale of machinery of $4,880. 3. Delsey did not sell land during the year. Exercise 12-10A (Algo) Part b b. Compute the amount of cash flow associated with the purchase of machinery. Cost of machinery purchased
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