Cash Flows from Investing Activities During the year, Murray Company sold equipment with a book value...

Question

Question

Cash Flows from Investing Activities During the year, Murray Company sold equipment with a book value...

Cash Flows from Investing Activities During the year, Murray Company sold equipment with a book value of $125,000 for $175,000 (original purchase cost of $225,000). New equipment was purchased. Murray provided the following comparative balance sheets:

Murray Company Comparative Balance Sheets At December 31, 20X1 and 20X2
	20X1	20X2
Long-Term Assets
Plant and equipment	$1,000,000	$1,025,000
Accumulated depreciation	(500,000)	(525,000)
Land	500,000	721,750

Required:

Calculate the investing cash flows for the current year. Use a minus sign to indicate a cash outflow.

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Answer:

Ending Plant and Equipment = Beginning Plant and Equipment + Plant and Equipment Purchased - Plant and Equipment Sold
$1,025,000 = $1,000,000 + Plant and Equipment purchased - $225,000
Plant and Equipment purchased = $250,000

Land, Ending = Land, Beginning + Land Purchased / (Sold)
$721,750 = $500,000 + Land Purchased / (Sold)
Land Purchased = $221,750

Cash Flow From/Used Investing Activities = Cash Received from sale of Equipment – Purchase of Plant and Equipment – Purchase of Land
Cash Flow From/Used Investing Activities = $125,000 - $250,000 - $221,750
Cash Flow Used Investing Activities = -$346,750

Add a comment

Answer 2

Similar Homework Help Questions

Cash Flows from Investing Activities During the year, Murray Company sold equipment with a book value...

Cash Flows from Investing Activities During the year, Murray Company sold equipment with a book value of $125,000 for $175,000 (original purchase cost of $225,000). New equipment was purchased Murray provided the following comparative balance sheets: Murray Company Comparative Balance Sheets At December 31, 20X1 and 20X2 20X1 20X2 Long-Term Assets Plant and equipment $1,000,000 $1,025,000 Accumulated depreciation (500,000) (525,000) Land 500,000 724,750 Required: Calculate the investing cash flows for the current year. Use a minus sign to indicate a...
Cash Flows from Investing Activities During the year, Swasey Company sold equipment with a book value...

Cash Flows from Investing Activities During the year, Swasey Company sold equipment with a book value of $560,000 for $760,000 (original purchase cost of $960,000). New equipment was purchased. Swasey provided the following comparative balance sheets: Swasey Company Comparative Balance Sheets At December 31, 20X1 and 20x2 20X1 20X2 Long-Term Assets: Plant and equipment $4,400,000 $4,300,000 Accumulated depreciation (2,400,000) (2,540,000) Land 2,000,000 2,875,000 Required: Calculate the investing cash flows for the current year. Use a minus sign to indicate a...
iment-take&inprogress-false Cash Flows from Investing Activities During the year, Swasey Company sold equipment with a book...

iment-take&inprogress-false Cash Flows from Investing Activities During the year, Swasey Company sold equipment with a book value of $560,000 for $760,000 (original purchase cost of $960,000). New equipment was purchased. Swasey provided the following comparative balance sheets: Swasey Company Comparative Balance Sheets At December 31, 20X1 and 20X2 20X1 20X2 Long-Term Assets: Plant and equipment $4,400,000 $4,300,000 (2,400,000) (2,540,000) Accumulated depreciation 2,875,000 2,000,000 Land Required: Calculate the investing cash flows for the current year. Use a minus sign to indicate...

During the year, Roberts Company sold equipment with a book value of $140,000 for $190,000 (original...

During the year, Roberts Company sold equipment with a book value of $140,000 for $190,000 (original purchase cost of $240,000). New equipment was purchased. Roberts provided the following comparative balance sheets: Roberts Company Comparative Balance Sheets At December 31, 20X1 and 20X2 20X1 20X2 Long-Term Assets: Plant and equipment $1,100,000 $1,075,000 Accumulated depreciation (600,000) (635,000) Land 500,000 718,750 Required: Calculate the investing cash flows for the current year. Use a minus sign to indicate a cash outflow.
Exercise 12-8 Cash flows from investing activities LO P3 a. Equipment with a book value of...

Exercise 12-8 Cash flows from investing activities LO P3 a. Equipment with a book value of $82,500 and an original cost of $167,000 was sold at a loss of $33,000. b. Paid $106,000 cash for a new truck. c. Sold land costing $310,000 for $430,000 cash, yielding a gain of $120,000. d. Long-term investments in stock were sold for $91,400 cash, yielding again of $15,500 Use the above information to determine cash flows from investing activities. (Amounts to be deducted...
Exercise 12-7 Cash flows from investing activities LO P3 a. Equipment with a book value of...

Exercise 12-7 Cash flows from investing activities LO P3 a. Equipment with a book value of $81,500 and an original cost of $164,000 was sold at a loss of $32,000. b. Paid $100,000 cash for a new truck. c. Sold land costing $325,000 for $405,000 cash, yielding a gain of $80,000. d. Long-term investments in stock were sold for $92,100 cash, yielding a gain of $14,000. Use the above information to determine this company's cash flows from investing activities. (Amounts...

Exercise 12-7 Cash flows from investing activities LO P3 Equipment with a book value of $80,000...

Exercise 12-7 Cash flows from investing activities LO P3 Equipment with a book value of $80,000 and an original cost of $162,000 was sold at a loss of $31,000. Paid $106,000 cash for a new truck. Sold land costing $325,000 for $405,000 cash, yielding a gain of $80,000. Long-term investments in stock were sold for $91,400 cash, yielding a gain of $14,000. Use the above information to determine this company's cash flows from investing activities. (Amounts to be deducted should...
Exercise 12-8 Cash flows from investing activities LO P3 Equipment with a book value of $81,500...

Exercise 12-8 Cash flows from investing activities LO P3 Equipment with a book value of $81,500 and an original cost of $167,000 was sold at a loss of $34,000. Paid $106,000 cash for a new truck. Sold land costing $330,000 for $415,000 cash, yielding a gain of $85,000. Long-term investments in stock were sold for $92,100 cash, yielding a gain of $14,750. Use the above information to determine cash flows from investing activities. (Amounts to be deducted should be indicated...
584 13 Statement of Cash Flows (480,0000 Cash flows from investing activities Sale of equipment Purchase...

584 13 Statement of Cash Flows (480,0000 Cash flows from investing activities Sale of equipment Purchase of equipment Net cash used by investing activities Cash flows from financing activities Payment of cash dividende Net Increase in cash Cash at beginning of period Cash end of period (200,000) Prepare almeno flowing directed LO4) 2. The income statement for Kosinski Manufacturing Company contains the following condensed information KOSINSKI MANUFACTURING COMPANY Income Statement For the Year Ended December 31, 2017 $6,583.000 $4.920,000 880.000...

Equipment with a book value of $ 8000 is sold for $ 3000 cash . the...

Equipment with a book value of $ 8000 is sold for $ 3000 cash . the statement of cash flows will report a: A. $5000 cash outflow in the financing activities section B. $3000 cash inflow in the operating activities section C. $5000 cash outflow in the operating activities section D. $3000 cash inflow in the investing activities section.

Cash Flows from Investing Activities During the year, Murray Company sold equipment with a book value...

Homework Answers

Add Answer to:
Cash Flows from Investing Activities During the year, Murray Company sold equipment with a book value...

Post as a guest

Earn Coins