Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Indicate the effect each separate transaction has on investing cash flows. (Amounts to be deducted should be indicated with a minus sign.) a. Sold a
Indicate the effect each separate transaction has on investing cash flows. (Amounts to be deducted should be indicated with a minus sign.) a. Sold a truck costing $49,000, with $25,600 of accumulated depreciation, for $11,600 cash. The sale results in a $11,800 loss. b. Sold a machine costing $14,200, with $9,800 of accumulated depreciation, for $8,600 cash. The sale results in a $4,200 gain. c. Purchased stock investments for $25,000 cash. The purchaser believes the stock is worth at least $33,600. X Answer is not complete. Cash flows from investing activities Cash paid for purchase of investment Cash received from sale of machine Cash received from sale of truck $ (11,600) X 8,600 17,800 x $ 14,800 Salud Company reports the following information. Selected Annual Income Statement Data Net income Depreciation expense Gain on sale of machinery Selected Year-End Balance Sheet Data $ 405,000 Accounts receivable increase 87,000 Prepaid expenses decrease 20,600 Accounts payable increase Wages payable decrease $ 54,400 12,600 6,600 3,100 Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities 0 $ 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started