Indicate the effect each separate transaction has on investing cash flows.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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**Title: Computing Investing Cash Flows**

**Objective:** Assess how separate transactions impact investing cash flows. (Amounts to be deducted are indicated with a minus sign.)

**Transactions:**

a. **Truck Sale**
   - Cost: $42,000
   - Accumulated Depreciation: $22,800
   - Cash Received: $8,800
   - Result: $10,400 Loss

b. **Machine Sale**
   - Cost: $11,000
   - Accumulated Depreciation: $8,400
   - Cash Received: $5,800
   - Result: $2,800 Gain

c. **Stock Purchase**
   - Investment Amount: $18,000
   - Estimated Stock Worth: $30,800

**Diagrams:**

- **Cash Flows from Investing Activities Table:** 
  - Contains rows with lines indicating placeholders for recording cash flows resulting from each transaction described above.
Transcribed Image Text:**Title: Computing Investing Cash Flows** **Objective:** Assess how separate transactions impact investing cash flows. (Amounts to be deducted are indicated with a minus sign.) **Transactions:** a. **Truck Sale** - Cost: $42,000 - Accumulated Depreciation: $22,800 - Cash Received: $8,800 - Result: $10,400 Loss b. **Machine Sale** - Cost: $11,000 - Accumulated Depreciation: $8,400 - Cash Received: $5,800 - Result: $2,800 Gain c. **Stock Purchase** - Investment Amount: $18,000 - Estimated Stock Worth: $30,800 **Diagrams:** - **Cash Flows from Investing Activities Table:** - Contains rows with lines indicating placeholders for recording cash flows resulting from each transaction described above.
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