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Reporting changes in equipment on statement of cash flows An analysis of the general ledger accounts indicates that office equipment, which cost $280,000 and on which accumulated depreciation totaled $153,900 on the date of sale, we sold for $108,200 during the year. Using this information, indicate the items to be reported on the statement of cash flows. Transactions Section of Statement of Cash Flows $280,000 cost of office equipment $153,900 accumulated depreciation $108,200 sales price $17,900 loss on sale of equipment (assume the Indirect method is used) Feedback Added or Deducted Check My Work How much cash was received from the sale, and what kind of cash flow activity would this be? Cash flows from operating activities result from transactions that affect net income. Cash flows from investing activities result from purchase or sale transactions of noncurrent assets. Cash flows from financing activities result from the issuance or retirement of debt and equity.

Reporting changes in equipment on statement of cash flows An analysis of the general ledger accounts indicates that office equipment, which cost $280,000 and on which accumulated depreciation totaled $153,900 on the date of sale, we sold for $108,200 during the year. Using this information, indicate the items to be reported on the statement of cash flows. Transactions Section of Statement of Cash Flows $280,000 cost of office equipment $153,900 accumulated depreciation $108,200 sales price $17,900 loss on sale of equipment (assume the Indirect method is used) Feedback Added or Deducted Check My Work How much cash was received from the sale, and what kind of cash flow activity would this be? Cash flows from operating activities result from transactions that affect net income. Cash flows from investing activities result from purchase or sale transactions of noncurrent assets. Cash flows from financing activities result from the issuance or retirement of debt and equity.

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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Reporting changes in equipment on statement of cash flows An analysis of the general ledger accounts indicates that office equipment, which cost $280,000 and on which accumulated depreciation totaled $153,900 on the date of sale, was sold for $108,200 during the year. Using this information, indicate the items to be reported on the statement of cash flows. Transactions Section of Statement of Cash Flows $280,000 cost of office equipment $153,900 accumulated depreciation $108,200 sales price $17,900 loss on sale of equipment (assume the Indirect method is used) Feedback Added or Deducted Check My Work How much cash was received from the sale, and what kind of cash flow activity would this be? Cash flows from operating activities result from transactions that affect net income. Cash flows from investing activities result from purchase or sale transactions of noncurrent assets. Cash flows from financing activities result from the issuance or retirement of debt and equity.
Transcribed Image Text:Reporting changes in equipment on statement of cash flows An analysis of the general ledger accounts indicates that office equipment, which cost $280,000 and on which accumulated depreciation totaled $153,900 on the date of sale, was sold for $108,200 during the year. Using this information, indicate the items to be reported on the statement of cash flows. Transactions Section of Statement of Cash Flows $280,000 cost of office equipment $153,900 accumulated depreciation $108,200 sales price $17,900 loss on sale of equipment (assume the Indirect method is used) Feedback Added or Deducted Check My Work How much cash was received from the sale, and what kind of cash flow activity would this be? Cash flows from operating activities result from transactions that affect net income. Cash flows from investing activities result from purchase or sale transactions of noncurrent assets. Cash flows from financing activities result from the issuance or retirement of debt and equity.
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