Using Excel to Determine the Cash Flow Effects of Equipment Disposals PROBLEM The T accounts for equipment and accumulated depreciation for Thompson Ltd. are shown here Student Work Area Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem area and work area as indicated. Equipment Jan. 1 Acquisition 80,000 40,000 Disposals 20,000 Dec 31 100,000 Accumulated Depreciation-Equipment Jan 1 44,500 Depreciation 20,000 Disposals 5,500 Dec. 31 59,000 a. What amount was reported on the statement of cash flows as "cash provided by disposal of equipment"? Hint: Prepare the journal entry to determine the effects of the sale Debit Credit In addition, Thompson's statement of income reported the following amount. Loss on disposal of equipment $ 1,500 Cash provided by disposal of equipment b. In what section of the statement of cash flows would the effects of this disposal transaction be reported? Reported as an operating activity Reported as an investing activity Reported as a financing activity