During the year, Hayashi, Inc. sold equipment with a book value of $125,000 for $175,000 (original purchase cost of $225,000). New equipment was purchased. Hayashi provided the following comparative balance sheets: Hayashi, Inc. 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 500,000 711,750 Required: Calculate the investing cash flows for the current year. Use a minus sign to indicate a cash outflow.
During the year, Hayashi, Inc. sold equipment with a book value of $125,000 for $175,000 (original purchase cost of $225,000). New equipment was purchased. Hayashi provided the following comparative balance sheets: Hayashi, Inc. 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 500,000 711,750 Required: Calculate the investing cash flows for the current year. Use a minus sign to indicate a cash outflow.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 20BEA
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Cash Flows from Investing Activities
During the year, Hayashi, Inc. sold equipment with a book value of $125,000 for $175,000 (original purchase cost of $225,000). New equipment was purchased.
Hayashi provided the following comparative balance sheets:
Hayashi, Inc. Comparative Balance Sheets At December 31, 20X1 and 20X2 |
||
20X1 | 20X2 | |
Long-Term Assets | ||
Plant and equipment | $1,000,000 | $1,025,000 |
Accumulated |
(500,000) | (525,000) |
Land | 500,000 | 711,750 |
Required:
Calculate the investing cash flows for the current year. Use a minus sign to indicate a
$
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