Required InformationExercise 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-endbalance sheets:Account TitleInvestment securitiesMachineryLandOther Information drawn from the accounting records:Year 2$ 104,300524,400143,3001. Delsey Incurred a $1,210 loss on the sale of Investment securities during Year 2.2. Old machinery with a book value of $4,860 (cost of $25.120 minus accumulated depreciation of $20,260) was sold.The Income statement showed a gain on the sale of machinery of $4,670.3. Delsey did not sell land during the year.Exercise 12-10A (Algo) Part ee. Prepare the investing activities section of the statement of cash flows.Note: Amounts to be deducted should be indicated with a minus sign.DEL SEY COMPANYStatement of Cash Flows (Investing Activities)For the Year Ended December 31, Year 2Cash flows from investing activities:Net cash outflow from investing activitiesYear 1$ 115,400427,900100, 200S< PrevGof 9mNext Required InformationExercise 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-endbalance sheets:Account TitleInvestment securitiesMachineryLandExercise 12-10A (Algo) Part dYear 2$ 104,300524,400143,300Other Information drawn from the accounting records:1. Delsey Incurred a $1,210 loss on the sale of Investment securities during Year 2.2. Old machinery with a book value of $4,860 (cost of $25.120 minus accumulated depreciation of $20,260) was sold.The Income statement showed a gain on the sale of machinery of $4,670.3. Delsey did not sell land during the year.Year 1$ 115,480427,900100, 200Cost of land purchased1. Compute the amount of cash flow associated with the purchase of land.

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Description: Required InformationExercise 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'

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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 $ 104,300 524,400 143,300 Year 1 $ 115,400 427,900 100, 200 Other Information drawn from the accounting records: 1. Delsey Incurred a $1,210 loss on the sale of Investment securities during Year 2. 2. Old machinery with a book value of $4,860 (cost of $25.120 minus accumulated depreciation of $20,260) was sold. The Income statement showed a gain on the sale of machinery of $4,670. 3. Delsey did not sell land during the year.

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 $ 104,300 524,400 143,300 Year 1 $ 115,400 427,900 100, 200 Other Information drawn from the accounting records: 1. Delsey Incurred a $1,210 loss on the sale of Investment securities during Year 2. 2. Old machinery with a book value of $4,860 (cost of $25.120 minus accumulated depreciation of $20,260) was sold. The Income statement showed a gain on the sale of machinery of $4,670. 3. Delsey did not sell land during the year.

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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