**Computing Investing Cash Flows****Objective:** Indicate the effect each separate transaction has on investing cash flows. (Amounts to be deducted should be indicated with a minus sign.)a. **Sold a truck** costing $48,000, with $25,200 of accumulated depreciation, for $11,200 cash. The sale results in an $11,600 loss.b. **Sold a machine** costing $13,800, with $9,600 of accumulated depreciation, for $8,200 cash. The sale results in a $4,000 gain.c. **Purchased stock investments** for $24,000 cash. The purchaser believes the stock is worth at least $33,200.**Table: Cash flows from investing activities**The table has rows for recording the cash inflows or outflows from each transaction. The result for this scenario indicates a total cash flow of $0, meaning all inflows and outflows equate to zero.1. Row for the sale of the truck: Record cash inflow of $11,200.2. Row for the sale of the machine: Record cash inflow of $8,200.3. Row for the purchase of stock investments: Record cash outflow of $24,000.The final balance reflects the net effect on investing activities.

Cash flow from investing activity is one of the activities shown in the statement of cash flows. It…

Indicate the effect each separate transaction has on investing cash flows. (Amounts to be deducted should be Indicated with a minus sign.) a Sold a truck costing $48,000, with $25,200 of accumulated depreciation, for $11,200 cash. The sale results in a $11,600 loss. b. Sold a machine costing $13,800, with $9,600 of accumulated depreciation, for $8,200 cash. The sale results in a $4,000 gain. c. Purchased stock Investments for $24,000 cash. The purchaser belleves the stock is worth at least $33,200. Cash flows from investing activities $ 0

Indicate the effect each separate transaction has on investing cash flows. (Amounts to be deducted should be Indicated with a minus sign.) a Sold a truck costing $48,000, with $25,200 of accumulated depreciation, for $11,200 cash. The sale results in a $11,600 loss. b. Sold a machine costing $13,800, with $9,600 of accumulated depreciation, for $8,200 cash. The sale results in a $4,000 gain. c. Purchased stock Investments for $24,000 cash. The purchaser belleves the stock is worth at least $33,200. Cash flows from investing activities $ 0

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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