Required information

Exercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3

Skip to question

[The following information applies to the questions displayed below.] The following accounts and corresponding balances were drawn from Delsey Companys Year 2 and Year 1 year-end balance sheets.

Account Title	Year 2	Year 1
Investment securities	$103,700	$113,000
Machinery	525,400	427,600
Land	145,700	92,700

Other information drawn from the accounting records:

1. Delsey incurred a $1,490 loss on the sale of investment securities during Year 2.
2. Old machinery with a book value of $4,850 (cost of $25,240 minus accumulated depreciation of $20,390) was sold. The income statement showed a gain on the sale of machinery of $4,440.
3. Delsey did not sell land during the year.

Required a. Compute the amount of cash flow associated with the sale of investment securities. b. Compute the amount of cash flow associated with the purchase of machinery.

c. Compute the amount of cash flow associated with the sale of machinery.

d. Compute the amount of cash flow associated with the purchase of land.

e. Prepare the investing activities section of the statement of cash flows. (Cash outflows should be indicated with a minus sign.)

DELSEY COMPANY Statement of Cash Flows (Investing Activities) For the Year Ended December 31, Year 2 Cash flows from investing activities: Net cash flow from investing activities