Question
The following information was drawn from the year-end balance sheets of Solomon Trading Company: Account Title Year 2 Year 1 Investment securities $ 35,700 $
The following information was drawn from the year-end balance sheets of Solomon Trading Company:
Account Title | Year 2 | Year 1 | ||||
Investment securities | $ | 35,700 | $ | 27,500 | ||
Equipment | 233,500 | 212,500 | ||||
Buildings | 846,500 | 949,500 | ||||
Land | 83,000 | 65,000 | ||||
Additional information regarding transactions occurring during Year 2:
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Investment securities that had cost $5,090 were sold. The Year 2 income statement contained a loss on the sale of investment securities of $720.
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Equipment with a cost of $40,000 was purchased.
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The income statement showed a gain on the sale of equipment of $5,700. On the date of sale, accumulated depreciation on the equipment sold amounted to $7,600.
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A building that had originally cost $163,500 was demolished.
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Land that had cost $26,100 was sold for $21,800.
Required
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Determine the amount of cash flow for the purchase of investment securities during Year 2.
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Determine the amount of cash flow from the sale of investment securities during Year 2.
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Determine the cost of the equipment that was sold during Year 2.
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Determine the amount of cash flow from the sale of equipment during Year 2.
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Determine the amount of cash flow for the purchase of buildings during Year 2.
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Determine the amount of cash flow for the purchase of land during Year 2.
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Prepare the investing activities section of the Year 2 statement of cash flows.
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