Transactions and income that affects the investments and fixed assets of the organization are known as investing activities. These activities record the inflow and outflow of cash from the investments. The cash flow from investing activities.

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Chapter 12, Problem 9QS

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Introduction: Transactions and income that affects the investments and fixed assets of the organization are known as investing activities. These activities record the inflow and outflow of cash from the investments.

The cash flow from investing activities.

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Indicate the effect each separate transaction has on investing cash flows. a. Sold a truck costing $40,000, with $22,000 of accumulated depreciation, for $8,000 cash. The sale results in a $10,000 loss. b. Sold a machine costing $10,000, with $8,000 of accumulated depreciation, for $5,000 cash. The sale results in a $3,000 gain. c. Purchased stock investments for $16,000 cash. The purchaser believes the stock is worth at least $30,000.

Indicate the effect each separate transaction has on investing cash flows. Note: Amounts to be deducted should be indicated with a minus sign.. a. Sold a truck costing $40,000, with $22,000 of accumulated depreciation, for $8,000 cash. The sale results in a $10,000 loss. b. Sold a machine costing $10,000, with $8,000 of accumulated depreciation, for $5,000 cash. The sale results in a $3,000 gain. c. Purchased stock investments for $16,000 cash. The purchaser believes the stock is worth at least $30,000. Answer is not complete. Cash flows from investing activities Cash received from sale of truck Cash received from sale of machine Cash paid for purchase of investment S 8,000 5,000 (16,000) › › › $ (3,000)

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