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During 20X1, Craig Company had the following transactions: A. Purchased $200,200 of 10-year bonds issued by Makenzie Inc. B. Acquired land valued at $70,000 in exchange for machinery. C. Sold equipment with original cost of $540,200 for $329,200; accumulated depreciation taken on the equipment to the point of sale was $179,200. D. Purchased new machinery for $120,300. E. Purchased common stock in Lemmons Company for $55,000. Required: 1. Prepare the net cash from investing activities section of the statement of cash flows. 2. CONCEPTUAL CONNECTION Usually, the net cash from investing activities is negative. How can Craig cover this negative cash flow? What other information would you like to have to make this decision?

During 20X1, Craig Company had the following transactions: A. Purchased $200,200 of 10-year bonds issued by Makenzie Inc. B. Acquired land valued at $70,000 in exchange for machinery. C. Sold equipment with original cost of $540,200 for $329,200; accumulated depreciation taken on the equipment to the point of sale was $179,200. D. Purchased new machinery for $120,300. E. Purchased common stock in Lemmons Company for $55,000. Required: 1. Prepare the net cash from investing activities section of the statement of cash flows. 2. CONCEPTUAL CONNECTION Usually, the net cash from investing activities is negative. How can Craig cover this negative cash flow? What other information would you like to have to make this decision?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Instructions During 20X1, Craig Company had the following transactions: A. Purchased $200,200 of 10-year bonds issued by Makenzie Inc. B. Acquired land valued at $70,000 in exchange for machinery. C. Sold equipment with original cost of $540,200 for $329,200; accumulated depreciation taken on the equipment to the point of sale was $179,200. D. Purchased new machinery for $120,300. E. Purchased common stock in Lemmons Company for $55,000. Required: 1. Prepare the net cash from investing activities section of the statement of cash flows. 2. CONCEPTUAL CONNECTION Usually, the net cash from investing activities is negative. How can Craig cover this negative cash flow? What other information would you like to have to make this decision?
Transcribed Image Text:Instructions During 20X1, Craig Company had the following transactions: A. Purchased $200,200 of 10-year bonds issued by Makenzie Inc. B. Acquired land valued at $70,000 in exchange for machinery. C. Sold equipment with original cost of $540,200 for $329,200; accumulated depreciation taken on the equipment to the point of sale was $179,200. D. Purchased new machinery for $120,300. E. Purchased common stock in Lemmons Company for $55,000. Required: 1. Prepare the net cash from investing activities section of the statement of cash flows. 2. CONCEPTUAL CONNECTION Usually, the net cash from investing activities is negative. How can Craig cover this negative cash flow? What other information would you like to have to make this decision?
Statement of Cash Flows (Partial) 1. Prepare the net cash from investing activities section of the statement of cash flows. (Note: Use a minus sign to indicate any decreases in cash or cash outflows. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.) Amount Descriptions and Labels Craig Company Refer to the list below for the exact wording of an amount description or label within your Statement of Cash Flows. Statement of Cash Flows (Partial) Year Ending December 31, 20X1 Amount Descriptions Labels 1 (Label) Land in exchange for machinery Cash flows from financing activities Net cash from investing activities Cash flows from investing activities 2 Purchase of bonds Noncash investing activity Purchase of common stock Purchase of new machinery Sale of equipment 7 (Label)
Transcribed Image Text:Statement of Cash Flows (Partial) 1. Prepare the net cash from investing activities section of the statement of cash flows. (Note: Use a minus sign to indicate any decreases in cash or cash outflows. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.) Amount Descriptions and Labels Craig Company Refer to the list below for the exact wording of an amount description or label within your Statement of Cash Flows. Statement of Cash Flows (Partial) Year Ending December 31, 20X1 Amount Descriptions Labels 1 (Label) Land in exchange for machinery Cash flows from financing activities Net cash from investing activities Cash flows from investing activities 2 Purchase of bonds Noncash investing activity Purchase of common stock Purchase of new machinery Sale of equipment 7 (Label)
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