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: Other information drawn from the accounting records: 1. Delsey incurred a $1,010 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $4,750 (cost of $25,580 minus accumulated depreciation of $20,830 ) was sold. The income statement showed a gain on the sale of machinery of $4,110. 3. Delsey did not sell land during the year. Exercise 12-10A (Algo) Part a Required a. Compute the amount of cash flow associated with the sale of investment securities. Required information 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: Other information drawn from the accounting records: 1. Delsey incurred a $1,010 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $4,750 (cost of $25,580 minus accumulated depreciation of $20,830 ) was sold. The income statement showed a gain on the sale of machinery of $4,110. 3. Delsey did not sell land during the year. Exercise 12-10A (Algo) Part b o. Compute the amount of cash flow associated with the purchase of machinery. 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: Other information drawn from the accounting records: 1. Delsey incurred a $1,010 loss on the sale of investment securities during Year 2 . 2. Old machinery with a book value of $4,750 (cost of $25,580 minus accumulated depreciation of $20,830 ) was sold. The income statement showed a gain on the sale of machinery of $4,110. 3. Delsey did not sell land during the year. Exercise 12-10A (Algo) Part c c. Compute the amount of cash flow associated with the sale of machinery. Required information 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: Other information drawn from the accounting records: 1. Delsey incurred a $1,010 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $4,750 (cost of $25,580 minus accumulated depreciation of $20,830 ) was sold. The income statement showed a gain on the sale of machinery of $4,110. 3. Delsey did not sell land during the year. Exercise 12-10A (Algo) Part d d. Compute the amount of cash flow associated with the purchase of land. 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: Other information drawn from the accounting records: 1. Delsey incurred a $1,010 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $4,750 (cost of $25,580 minus accumulated depreciation of $20,830 ) was sold. The income statement showed a gain on the sale of machinery of $4,110. 3. Delsey did not sell land during the year. Exercise 12-10A (Algo) Part e e. Prepare the investing activities section of the statement of cash flows. Note: Amounts to be deducted should be indicated with a minus sign
