The following information was drawn from the year-end balance sheets of Desoto Company: Account Title Investment securities Equipment Buildings Land 2012 $ 33,500 235,000 845,000 80,000 2011 $ 30,000 220,000 962,000 69,000 Additional information regarding transactions occurring during 2012: 1. Investment securities that had cost $5,600 were sold. The 2012 income statement contained a loss on the sale of investment securities of $600. 2. Equipment with a cost of $50,000 was purchased.
The following information was drawn from the year-end balance sheets of Desoto Company: Account Title Investment securities Equipment Buildings Land 2012 $ 33,500 235,000 845,000 80,000 2011 $ 30,000 220,000 962,000 69,000 Additional information regarding transactions occurring during 2012: 1. Investment securities that had cost $5,600 were sold. The 2012 income statement contained a loss on the sale of investment securities of $600. 2. Equipment with a cost of $50,000 was purchased.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:excel
CHECK FIGURES
b. $5,000
c. $35,000
The following information was drawn from the year-end balance sheets of Desoto Company:
Account Title
Investment securities
Equipment
Buildings
Land
2012
$ 33,500
235,000
845,000
80,000
Additional information regarding transactions occurring during 2012:
1. Investment securities that had cost $5,600 were sold. The 2012 income statement contained a
loss on the sale of investment securities of $600.
Equipment with a cost of $50,000 was purchased.
2.
2011
$ 30,000
220,000
962,000
69,000
3. The income statement showed a gain on the sale of equipment of $6,000. On the date of sale,
accumulated depreciation on the equipment sold amounted to $8,000.
4. A building that had originally cost $158,000 was demolished.
5. Land that had cost $25,000 was sold for $22,000.
Required
a. Determine the amount of cash flow for the purchase of investment securities during 2012.
b. Determine the amount of cash flow from the sale of investment securities during 2012.
c. Determine the cost of the equipment that was sold during 2012.
d. Determine the amount of cash flow from the sale of equipment during 2012.
e. Determine the amount of cash flow for the purchase of buildings during 2012.
f. Determine the amount of cash flow for the purchase of land during 2012.
g. Prepare the investing activities section of the 2012 statement of cash flows.
Statement of Cash Flows
653
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