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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:

  1. Delsey incurred a $6,000 loss on the sale of investment securities during 2017.

  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

  1. Compute the amount of cash flow associated with the sale of investment securities.

  2. Compute the amount of cash flow associated with the purchase of machinery.

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

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

  5. 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.)

DELSEY COMPANY
Statement of Cash Flows (Investing Activities)
For the Year Ended December 31, 2017
Cash flows from investing activities:
Net cash flow from operating activities $0

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