Why is the formula for calculating investment cash flow in the exercise (blue background) different from the formula for calculating investment cash flow in the textbook (white background)? Could anyone explain the calculation of investment cash flow in this exercise in detail? Thank you.

EXAMPLE: Statement of cash flows using the indirect method Use the following balance sheet and income statement to prepare a statement of cash flows under the indirect method. Income Statement for 20X7 Sales $100,000 Expense Cost of goods sold 40,000 Wages 5,000 Depreciation 7,000 Interest 1,000 Total expenses $53,000 Income from continuing operations $47,000 Gain from sale of land 10,000 Pretax income 57,000 Provision for taxes 20,000 Net income $37,000 Common dividends declared $8.500 20X6 Balance Sheets for 20X7 and 20X6 20X7 Assets Current assets Cash $33,000 Accounts receivable 10,000 Inventory 5,000 Noncurrent assets $9,500 9,000 7,000 $35,000 85,000 (16,000) $69,000 10,000 $162,000 $40,000 60,000 (9,000) $51,500 10,000 $126,500 Land Gross plant and equipment Less: Accumulated depreciation Net plant and equipment Goodwill Total assets Liabilities Current liabilities Accounts payable Wages payable Interest payable Taxes payable Dividends payable Total current liabilities Noncurrent liabilities Bonds Deferred tax liability Total liabilities Stockholders' equity Common stock Retained earnings Total equity Total liabilities and stockholders' equity $9,000 4,500 3,500 5,000 6.000 28,000 $5,000 8,000 3,000 4,000 1,000 21,000 $15,000 20,000 $63,000 $10,000 15,000 $46,000 $40,000 59,000 $99,000 $162,000 $50,000 30,500 $80,000 $126,500 Any discrepancies between the changes in accounts reported on the balance sheet and those reported in the statement of cash flows are typically due to business combinations and changes in exchange rates. Investing cash flow: In this example, we have two components of investing cash flow: the sale of land and the change in gross plant and equipment (P&E). cash from sale of land = decrease in asset + gain on sale = $5,000 + $10,000 = $15,000 (source) beginning land + land purchased - gross cost of land sold = ending land = $40,000 + $0 - $5,000 = $35,000 Note: If the land had been sold at a loss, we would have subtracted the loss amount from the decrease in land. P&E purchased = ending gross P&E + gross cost of P&E sold - beginning gross P&E = $85,000 + $0 - $60,000 = $25,000 (use) beginning gross P&E + P&E purchased - gross cost of P&E sold = ending P&E = $60,000 + $25,000 - $0 = $85,000 Cash from sale of land $15,000 Purchase of plant and equipment (25,000 Cash flow from investments ($10,000) When calculating the cash flow from an asset that has been sold, it is necessary to consider any gain or loss from the sale using the following formula: cash from asset sold = book value of the asset + gain (or - loss) on sale