Exercise 12-10A 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 $101,400 524,409 144,900 Year 1 $115,000 425,700 100, 500 Other information drawn from the accounting records: 1. Delsey incurred a $1.480 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $4,140 (cost of $25,210 minus accumulated depreciation of $21,070) was sold. The income statement showed a gain on the sale of machinery of $4,520. 3. Delsey did not sell land during the year. Exercise 12-10A Part a Required a. Compute the amount of cash flow associated with the sale of investment securities Accountitle Investment securities Machinery Land $ 181,400 409 144,989 $115,000 425,789 190,500 Other information drawn from the accounting records: 1. Delsey incurred a $1,480 loss on the sale of investment securities during Year 2 2. Old machinery with a book value of $4,140 (cost of $25,210 minus accumulated depreciation of income statement showed a gain on the sale of machinery of $4,520. 3. Delsey did not sell land during the year. Exercise 12-10A Part b b. Compute the amount of cash flow associated with the purchase of machinery Cost of machinery purchased The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end balance sheets of 5 Account Title Investment securities Machinery Land $ 101,409 524.409 144,900 $115,00 425.709 160,500 Other information drawn from the accounting records: 1. Delsey incurred a $1,480 loss on the sale of investment securities during Year 2 2. Old machinery with a book value of $4,140 (cost of $25,210 minus accumulated depreciation of $21070) was sold. The income statement showed a gain on the sale of machinery of $4.520 3. Delsey did not sell land during the year. Exercise 12-10A Part c. Compute the amount of cash flow associated with the sale of machinery Amount of cash flow Account Title Investment securities Machinery Land Year 2 $191, 499 524,489 144,989 Year $115,000 425 789 109,500 Other information drawn from the accounting records: 1. Delsey incurred a $1,480 loss on the sale of investment securities during Year 2 2. Old machinery with a book value of $4,140 (cost of $25,210 minus accumulated depreciatior income statement showed a gain on the sale of machinery of $4,520. 3. Delsey did not sell land during the year. Exercise 12-10A Part d d. Compute the amount of cash flow associated with the purchase of land. Cost of land purchased