Chapter 10, Problem 20P

Accounting problem

Can you solve this general accounting question with the appropriate accounting analysis techniques?

Lakeme, Inc. reported net income of $50,000 for the year ended December 31, 2022. Included in net income were depreciation expenses of $9,200 and a gain on the sale of equipment of $2,100. The equipment had a historical cost of $45,000 and accumulated depreciation of $28,000. Each of the following accounts increased during 2022: Accounts Patents Prepaid rent Increase Amount $6,000 $7,200 Available-for-sale securities $1,500 Bonds payable $6,000 What is the amount of cash provided by or used by investing activities for Lakeme, Inc. for the year ended December 31, 2022?