College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 23, Problem 6CE
To determine

Compute cash from operating activities under the indirect method.

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Proceeds from the sale of equipment by Perkins Nonprofit were $100. The equipment had a historical cost of $500 and accumulated depreciation of $375. Show which section of the statement of cash flows (using the indirect method) where amounts related to this transaction would appear, including direction and amount.
An analysis of the general ledger accounts indicates that delivery equipment, which cost P80,000 and on which accumulated depreciationtotaled 36,000 on the date of sale, was sold for P37,200 during the year. Using this information, indicate the items to be reported on thestatement of cash flows
In Year 2, Lansing Company purchased equipment for $357,000 and also sold some special purpose machinery with a book value of $152,600 for $177,000. In its statement of cash flows for Year 2, the company should report the following with respect to the above transactions: 5 Multiple Choice $180,000 net cash used by investing activities. Jhm $357,000 net cash used by investing avities. $180,000 net cash used by investing activities; $24,400 net cash provided by operating activities. $357,000 cash used by investing activities; $177,000 cash provided by financing activities.

Chapter 23 Solutions

College Accounting, Chapters 1-27

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