Reconstructing Investing Cash Flows

The balance sheet of Jack's Snacks, Inc., reports the following amounts:

Additional information

During the year, Jack's Snacks disposed of a used piece of equipment. The original cost of the equipment was $$160,000$ and, at the time of disposal, the accumulated depreciation on the equipment was $$120,000.$

The purchaser of the used piece of equipment paid in cash, and Jack's Snacks reported a gain of $$70,000$ on the disposal. All acquisitions of new property, plant, and equipment were paid for in cash.

Answer the following questions using the FSET.

Note: Indicate a decrease in an account category by including a negative sign with the amount in the FSETs below.

a $1.$ How much cash did Jack's Snacks receive from the used equipment disposal?

Disposal using FSET:

Cash Jack's Snacks receive from the used equipment disposal: $

a $2.$ How would this amount be reported on the statement of cash flows?

The company would repo

in the

section of the statement of cash flows.