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Required information The following information applies to the questions displayed below) The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and
Required information 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 Year 2 Year 1 Investment securities $110,000 $116,500 Machinery 486,000 437,600 160,000 100,000 Other Information drawn from the accounting records: Land 1. Delsey incurred a $6,000 loss on the sale of Investment securities during Year 2. 2. Old machinery with a book value of $8,000 (cost of $36,000 minus accumulated depreciation of $28,000) was sold. The income statement showed a gain on the sale of machinery of $4,500 3. Delsey did not sell land during the year. Required a. Compute the amount of cash flow associated with the sale of investment securities, Amount of cash flow Required Information 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 Year 2 Year 1 Investment securities $110.000 $116,500 Machinery 486,008 437,000 Land 160,000 100,000 Other information drawn from the accounting records: 1. Delsey incurred a $6,000 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $8,000 (cost of $36,000 minus accumulated depreciation of $28.000) was sold. The income statement showed a gain on the sale of machinery of $4,500. 3. Delsey did not sell land during the year. b. Compute the amount of cash flow associated with the purchase of machinery Cost of machinery purchased Required information 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 Year 2 Year 1 Investment securities $110,000 $116,500 Machinery 486,000 437,000 Land 160,000 100,000 Other information drawn from the accounting records. 1. Delsey incurred a $6,000 loss on the sale of investment securities during Year 2 2. Old machinery with a book value of $8,000 (cost of $36,000 minus accumulated depreciation of $28,000) was sold. The income statement showed a gain on the sale of machinery of $4,500. 3. Delsey did not sell land during the year. c. Compute the amount of cash flow associated with the sale of machinery. Amount of cash flow Required information [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 Year 2 Year 1 Investment securities $110,000 $116,500 Machinery 486,000 437,000 160,000 100,000 Other information drawn from the accounting records: Land 1. Delsey incurred a $6,000 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $8,000 (cost of $36,000 minus accumulated depreciation of $28,000) was sold. The income statement showed a gain on the sale of machinery of $4,500. 3. Delsey did not sell land during the year. d. Compute the amount of cash flow associated with the purchase of land. Cost of land purchased [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 Year 2 Year 1 Investment securities $110,000 $116,500 Machinery 486,000 437,000 Land 160,800 100,000 Other information drawn from the accounting records 1. Delsey incurred a $6,000 loss on the sale of investment securities during Year 2. 2. Old machinery with a book value of $8,000 (cost of $36,000 minus accumulated depreciation of $28,000) was sold. The income statement showed a gain on the sale of machinery of $4,500 3. Delsey did not sell land during the year. 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: $ 0 Net cash flow from investing activities
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