During 20X1, Craig Company had the following transactions: A. Purchased $200,200 of 10-year bonds issued by Makenzie Inc. B. Acquired land valued at $70,000 in exchange for machinery. C. Sold equipment with original cost of $540,200 for $329,200; accumulated depreciation taken on the equipment to the point of sale was $179,200. D. Purchased new machinery for $120,300. E. Purchased common stock in Lemmons Company for $55,000. Required: 1. Prepare the net cash from investing activities section of the statement of cash flows. 2. CONCEPTUAL CONNECTION Usually, the net cash from investing activities is negative. How can Craig cover this negative cash flow? What other information would you like to have to make this decision?
During 20X1, Craig Company had the following transactions: A. Purchased $200,200 of 10-year bonds issued by Makenzie Inc. B. Acquired land valued at $70,000 in exchange for machinery. C. Sold equipment with original cost of $540,200 for $329,200; accumulated depreciation taken on the equipment to the point of sale was $179,200. D. Purchased new machinery for $120,300. E. Purchased common stock in Lemmons Company for $55,000. Required: 1. Prepare the net cash from investing activities section of the statement of cash flows. 2. CONCEPTUAL CONNECTION Usually, the net cash from investing activities is negative. How can Craig cover this negative cash flow? What other information would you like to have to make this decision?
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter22: End-of-fiscal-period Work For A Corporation
Section: Chapter Questions
Problem 1ANFS
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