Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Frank Woods Business Accounting Volume 2

Authors: Frank Wood, Alan Sangster

13th Edition

1292085053, 9781292085050

More Books

Students also viewed these Accounting questions