Question
The following accounts and corresponding balances were drawn from Delsey Companys 2017 and 2016 year-end balance sheets: Account Title 2017 2016 Investment securities $ 110,000
The following accounts and corresponding balances were drawn from Delsey Companys 2017 and 2016 year-end balance sheets:
Account Title | 2017 | 2016 | ||||
Investment securities | $ | 110,000 | $ | 116,500 | ||
Machinery | 486,000 | 437,000 | ||||
Land | 160,000 | 100,000 | ||||
Other information drawn from the accounting records:
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Delsey incurred a $6,000 loss on the sale of investment securities during 2017.
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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.
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Delsey did not sell land during the year.
Required
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Compute the amount of cash flow associated with the sale of investment securities.
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Compute the amount of cash flow associated with the purchase of machinery.
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Compute the amount of cash flow associated with the sale of machinery.
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Compute the amount of cash flow associated with the purchase of land.
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Prepare the investing activities section of the statement of cash flows.
Complete this question by entering your answers in the tabs below.
- Req A to D
- Req E
Prepare the investing activities section of the statement of cash flows. (Amounts to be deducted should be indicated with minus sign.)
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