e. Prepare the investing activities section of the statement of cash flows.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![5
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
Year 2
$ 103,400
521,300
145, 100
Year 1
$ 114,400
425, 100
91,800
Other information drawn from the accounting records:
1. Delsey incurred a $1,330 loss on the sale of investment securities during Year 2.
2. Old machinery with a book value of $4,130 (cost of $25,010 minus accumulated depreciation of $20,880) was sold. The
income statement showed a gain on the sale of machinery of $4,980,
3. Delsey did not sell land during the year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F694435e9-c68e-462e-95d0-72c536fe44b4%2Ffc531432-0401-40be-b31d-c1ac0bcd61ab%2Fa1yygbo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5
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
Year 2
$ 103,400
521,300
145, 100
Year 1
$ 114,400
425, 100
91,800
Other information drawn from the accounting records:
1. Delsey incurred a $1,330 loss on the sale of investment securities during Year 2.
2. Old machinery with a book value of $4,130 (cost of $25,010 minus accumulated depreciation of $20,880) was sold. The
income statement showed a gain on the sale of machinery of $4,980,
3. Delsey did not sell land during the year.
Transcribed Image Text:Exercise 12-10A (Algo) Part e
e. Prepare the investing activities section of the statement of cash flows.
Note: Amounts to be deducted should be indicated with a minus sign.
DELSEY COMPANY
Statement of Cash Flows (Investing Activities)
For the Year Ended December 31, Year 2
Cash flows from investing activities:
Net cash outflow from investing activities
$
0
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education