Equipment with a book value of $80,000 andan original cost of $166,000 was sold at a lossof $37,000.Paid $100,000 cash for a new truck.Sold land costing $320,000 for $420,000cash, yielding a gain of $100,000.Long-term investments in stock were sold for$94,900 cash, yielding a gain of $14,750.Use the above information to determine thiscompany's cash flows from investingactivities. (Amounts to be deducted should beindicated with a minus sign.)

Answered: Use the above information to determine…

Use the above information to determine this company's cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.)

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.23MCE

See similar textbooks

Related questions

Q: Generally, the most important category on the statement of cash flows is cash flows from investing…

A: Financial statements are the financial documents prepared by the entity to portray the financial…

Q: The Statement of Cash Flows comprises of three activities, which are operating activities, investing…

A: Introduction: Statement of cash flows: All cash in and out flows are shown in statement of cash…

Q: What is the statement of cash flows? List down three types of activities disclosed in the statement…

A: Cash flow statements are financial statements that record transactions that included cash or cash…

Q: In which direction (positive or negative) would you normally expect each of the following cash flow…

A: The cash flow statement indicates the inflow and outflow of cash within the company in the…

Q: Using indirect method, compute for the following: 1. net cash flow from operating activities 2.…

A: There are two types of methods to calculate the net cash flow from operating activity: Indirect…

Q: The statement of cash flows reports all, except: a. the net change in cash for the period b. the…

A: Cash flow statement: It is a financial statement that shows level of cash and cash equivalents…

Q: Indicate whether each of the following activities would be reported on the statement of cash flows…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: Classify the following cash flows as either operating (O), investing (I), or financing (F)…

A: Statement of cash flows:

Q: From the following list, identify each item as operating, investing, financing, or not separately…

A: The cash flow statement includes all the cash-related activities that are recorded in this statement…

Q: Which of the following is not a use of the statement of cash flows? a. Aids in the prediction of…

A: The cash flow statement is a part of the financial statement which is necessary to know how much…

Q: The statement of cash flow's should help investors and creditors assess each of the following except…

A: A cash flow statement is prepared by the company to measure the amount of cash inflows and cash…

Q: The main categories of cash flow activities on the statement of cash flows are direct and indirect.…

A: Definition:

Q: Why are both the income statement and statement of cash flows relevant to investors? Examine the…

A: SOLUTION- INCOME STATEMENT IS A FINANCIAL STATEMENT THAT SHOWS YOU THE COMPANY'S INCOME AND…

Q: Which one of the following defines a cash flow statement correctly? Select one: a. A cash flow…

A: The question is multiple choice question. Required Choose the Correct Option.

Q: Identify whether each of the following would be reported as an operating, investing, or financing…

A: Cash flow from financing activities: Under the cash flow from financing activities of a cash flow…

Q: When using the indirect method of determining net cash flows from operating activities, how is…

A: Cash flow statement (CFS) is a type of financial statement that gives a summary related to all the…

Q: The primary objective of the statement of cash flows is to provide information about a company's: O…

A: Solution: Statement of cash flows is a financial statement that provides data regarding all cash…

Q: In which direction (positive or negative) would you normally expect each of the following cash flow…

A: Cash flows are net amount of money generated by business. When the cash…

Q: Place the following items in the correct order as they would appear in the statement of cash flows.…

A: Cash flow statement is a statement which provides detail of all cash inflows and outflows of the…

Q: Identify the section of the statement of cash flows (a–d) where each of the following items would be…

A: Cash flow from operating activities: This section of the cash flow statement provides information…

Q: Identify the section of the statement of cash flows where each of the following items would be…

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: Do cash flows from operating activities report all the elements of the income statement on a cash…

Q: The main categories of cash flow activities on the statement of cash flows are a. direct and…

A: Direct and indirect: Cash flow statements are prepared by using the direct or indirect methods.…

Q: Which is an example of a cash flow from an investing activity?a. Receipt of cash from the issue of…

A: Statement of Cash flow or CFS (Cash Flow Statement) is one of the vital financial statements along…

Q: Which of the following is included on the statement of cash flows? a.Cash flows from (used for)…

A: Cash flow statement consists of 1. Cash flow from operating activities 2. Cash flow from (or used…

Q: What types of transactions are reported in the non-cash investing and financing activities section…

A: Concept:

Q: Which of the following is reported as an investing activity in the statement of cash flows? The…

A: Cash flows from investing activity involves cash payment on purchasing of assets & investment…

Q: Identify how each of the following separate transactions 1 through 10 affects financial statements.…

A: Accounting equation is the equation which states the relationship among the stockholders equity,…

Q: -Interest paid by an invesment company will come under which kind of activity while preparing cash…

A: Cash flow statement is a part of financial statement, which summarizes the cash & cash…

Q: What problems relating to the company’s activities are revealed by the statement of cash flows…

A: Cash Flow Statement: It is a financial statement prepared by a company to report their cash…

Q: Use the following excerpts from Grenada Company’s financial records to determine net cash flows from…

A: Incomes from contributing exercises gives a record of money utilized in the acquisition of…

Q: In its statement of cash flows, the company should report net cash flows from investing activities…

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Q: Which of the following is included in the cash flows from financing activities section of the…

A: Financing Activities: In the statement of cash flows, "financing operations" relate to the flow of…

Q: On the statement of cash flows, the investing activities section would include Oa. cash paid for…

A: Solution: Introduction: A cash flow statement is one of the financial statements of a business…

Q: When calculating the cash flows from operating activities which of the following statements is true?…

A: Cash flows from operating activities states that how much cash comes into the business and went out…

Q: Write an X in the appropriate column to show whether each of the following cash flows should be…

A: Cash flow from operating activities refers to cash flows related to operations of business.…

Q: assuming the indirect method is used to prepare the statement of cash flows. tell whether each of…

A: Cash flow statement is the statement showing the receipts and payments of cash which are made for…

Q: Use the following excerpts from Fruitcake Company’s financial records to determine net cash flows…

A: Cash flows from investing activities: Cash flows from investing activities section is the second…

Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Equipment with a book value of $80,000 and
an original cost of $166,000 was sold at a loss
of $37,000.
Paid $100,000 cash for a new truck.
Sold land costing $320,000 for $420,000
cash, yielding a gain of $100,000.
Long-term investments in stock were sold for
$94,900 cash, yielding a gain of $14,750.
Use the above information to determine this
company's cash flows from investing
activities. (Amounts to be deducted should be
indicated with a minus sign.)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The Crystal Company uses straight-line depreciation and is considering a capital expenditure for which the following relevant cash flow data have been estimated: Estimated useful life: 3 years Initial investment: $400,000 Savings year 1: $160,000 Savings year 2: $150,000 Savings year 3: $90,000 Residual value after 3 yrs $30,000 The accounting rate of return is closest to 37.50%. 15.00%. 0.53%. 2.50%.
What is the salvage cash flow for a piece of equipment given the following information. The equipment had an initial book value of $226,000. The asset was set up to be depreciated straight-line for 8 years to a book value of 0. The equipment can be sold today for $69,000. Depreciation has been taken for 4 years. The firms tax rate is 29%
A company purchased a valuable capital asset three years ago for $8.2 million and it currently has a book value of $6.2 million. The asset is now being sold for $11.6 million. (a) What is the amount of the depreciation recapture, ordinary losses, and capital gain associated with the sale of the asset? Depreciation Recapture: $ Blank 1. Calculate the answer by read surrounding text. million Ordinary Losses: $ Blank 2. Calculate the answer by read surrounding text. million Capital Gain: $ Blank 3. Calculate the answer by read surrounding text. million (b) Assuming that the company is subject to a federal income tax rate of 21%, a state income tax rate of 5.6% and a federal capital gains tax rate of 15%, what is the combined state plus federal tax rate and how much will the company owe in taxes as the result of this sale? Combined State & Federal Tax Rate: Blank 4. Calculate the answer by read surrounding text. % Taxes Owed: $ Blank 5. Calculate the answer by read surrounding text.…
Phelm Corporation sold a piece of equipment for cash and recognized a gain of $5,000. The original cost was $34,000 and the accumulated depreciation just prior to the sale totaled $19,000. What amount will appear in the investing activities section of the statement of cash flows? $20,000 $54,000 $10,000 $15,000
Freeman Corporation bought a piece of machinery. Selected data is presented below: Useful life 6 years Yearly net cash inflow P45,000 Salvage value - 0 - Internal rate of return 18% Cost of capital 15% 26. The discounted payback period is 31. The present value index of the machinery is 32. The net present value of the machinery is
Assume a company did not purchase any equipment during the year, but it did sell a piece of equipment that had an original cost of $500,000 and accumulated depreciation of $300,000. The gain on the sale was $25,000. Based solely on the information provided, the company’s net cash provided by (used in) investing activities would be: Multiple Choice $200,000. $225,000. $250,000. $275,000.
Consider the following facts and do not consider the effect of income taxes: Initial cost of equipment Estimated life Salvage value Annual cash inflows Estimated cost of capital $45,000 5 years $5,000 $63,300. O $14,890. $59,895. O $18,319. $15,000 The net present value of the equipment is: 8%
Harper Corporation has the following information about the purchase of a new piece of equipment: Cash revenues less cash expenses $50,000 per year Cost of equipment $130,000 Salvage value at the end of the 8th year $22,000 Increase in working capital requirements $35,000 Tax rate 25 percent Life 8 years The cost of capital is 13 percent. Required: Calculate the following assuming straight-line depreciation: Calculate the accrual accounting rate of return on original investment for…
A company has bottling equipment which cost $77 million, has a net book value of $4 million, estimated future cash flows of $3.3 million, and a fair value of $2.7 million. How much is the asset impairment loss? Multiple Choice $5.00 million $0.70 million. $4.00 million, $1.30 million.
Estimate the average total estimated useful life of depreciable property, plant, and equipment. Starbucks reports 580.6 million of depreciation and amortization in the statement of cash flows, of which 4.5 million relates to amortization of limited-life intangible assets. Does the estimate reconcile with stated accounting policy on useful lives for property, plant, and equipment? Explain.
In 20x7, Sweet Treats sold a piece of equipment with a purchase value of $371,000 and acumulated depreciation of $247,000 for $75,000. Sweet Treats realized a loss of $49.000 n the sale HoW Would this transaction affect overall cash flows? O a Cash flows would increase by $26.000, 0b Cash flows would increase by S49.00 0¢ Cash flows would ncrease by $75.00 0d Cash flows would decrease by $49.00
Harper Corporation has the following information about the purchase of a new piece of equipment: Cash revenues less cash expenses $50,000 per year Cost of equipment $130,000 Salvage value at the end of the 8th year $22,000 Increase in working capital requirements $35,000 Tax rate 25 percent Life 8 years The cost of capital is 13 percent. Required: Calculate the following assuming that depreciation expense is $24,000, $21,000, $18,000, $15,000, $12,000, $9,000, $6,000 and $3,000 for…