c. Compute the amount of cash flow associated with the sale of machinery.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3
[The following information applies to the questions displayed below.]
The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end
balance sheets:
Account Title
Investment securities
Machinery
Land
Exercise 12-10A (Algo) Part c
Year 2
$ 102, 100
527,300
143,500
Other information drawn from the accounting records:
1. Delsey incurred a $1,300 loss on the sale of investment securities during Year 2.
2. Old machinery with a book value of $4,070 (cost of $25,390 minus accumulated depreciation of $21,320) was sold. The
income statement showed a gain on the sale of machinery of $4,220.
3. Delsey did not sell land during the year.
Amount of cash flow
Year 1
$ 112,700
427,100
98,000
c. Compute the amount of cash flow associated with the sale of machinery.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb828d974-21a6-44e8-a19c-78b2b23452a3%2F2667a701-c787-4230-b06e-0873a05686aa%2Fcpng018_processed.jpeg&w=3840&q=75)
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Required information
Exercise 12-10A (Algo) Determining cash flows from investing activities LO 12-3
[The following information applies to the questions displayed below.]
The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1 year-end
balance sheets:
Account Title
Investment securities
Machinery
Land
Exercise 12-10A (Algo) Part c
Year 2
$ 102, 100
527,300
143,500
Other information drawn from the accounting records:
1. Delsey incurred a $1,300 loss on the sale of investment securities during Year 2.
2. Old machinery with a book value of $4,070 (cost of $25,390 minus accumulated depreciation of $21,320) was sold. The
income statement showed a gain on the sale of machinery of $4,220.
3. Delsey did not sell land during the year.
Amount of cash flow
Year 1
$ 112,700
427,100
98,000
c. Compute the amount of cash flow associated with the sale of machinery.
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