Indicate the effect each separate transaction has on investing cash flows. Note: Amounts to be deducted should be indicated with a minus sign.. a. Sold a truck costing $40,000, with $22,000 of accumulated depreciation, for $8,000 cash. The sale results in a $10,000 loss. b. Sold a machine costing $10,000, with $8,000 of accumulated depreciation, for $5,000 cash. The sale results in a $3,000 gain. c. Purchased stock investments for $16,000 cash. The purchaser believes the stock is worth at least $30,000. Answer is not complete. Cash flows from investing activities Cash received from sale of truck Cash received from sale of machine Cash paid for purchase of investment $ 8,000 5,000 ♥ ♥ (16,000) $ (3,000)

Indicate the effect each separate transaction has on investing cash flows. Note: Amounts to be deducted should be indicated with a minus sign.. a. Sold a truck costing $40,000, with $22,000 of accumulated depreciation, for $8,000 cash. The sale results in a $10,000 loss. b. Sold a machine costing $10,000, with $8,000 of accumulated depreciation, for $5,000 cash. The sale results in a $3,000 gain. c. Purchased stock investments for $16,000 cash. The purchaser believes the stock is worth at least $30,000. Answer is not complete. Cash flows from investing activities Cash received from sale of truck Cash received from sale of machine Cash paid for purchase of investment $ 8,000 5,000 ♥ ♥ (16,000) $ (3,000)

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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