Determining Cash Flows from Investing Activities Burns Company’s 2019 and 2018 balance sheets presented the following data for equipment: Jan. 1 Dec. 31 Equipment $262,000 $325,000 Accumulated depreciation 108,000 133,900 Book value $154,000 $191,100 During the year, equipment costing $41,000 with accumulated depreciation of $36,700 was sold for cash, producing a $3,200 gain. Required: 1. Calculate the amount of depreciation expense. $fill in the blank 1 2. Calculate the amount of cash spent for equipment. $fill in the blank 2 3. Calculate the amount that should be included as a cash inflow from the disposal of equipment.
Determining Cash Flows from Investing Activities Burns Company’s 2019 and 2018 balance sheets presented the following data for equipment: Jan. 1 Dec. 31 Equipment $262,000 $325,000 Accumulated depreciation 108,000 133,900 Book value $154,000 $191,100 During the year, equipment costing $41,000 with accumulated depreciation of $36,700 was sold for cash, producing a $3,200 gain. Required: 1. Calculate the amount of depreciation expense. $fill in the blank 1 2. Calculate the amount of cash spent for equipment. $fill in the blank 2 3. Calculate the amount that should be included as a cash inflow from the disposal of equipment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Determining Cash Flows from Investing Activities
Burns Company’s 2019 and 2018 balance sheets presented the following data for equipment:
Jan. 1 Dec. 31
Equipment $262,000 $325,000
Book value $154,000 $191,100
During the year, equipment costing $41,000 with accumulated depreciation of $36,700 was sold for cash, producing a $3,200 gain.
Required:
1. Calculate the amount of depreciation expense.
$fill in the blank 1
2. Calculate the amount of cash spent for equipment.
$fill in the blank 2
3. Calculate the amount that should be included as a
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