Mercury Inc. reported net income of $100,000 for 2020. In addition, the income statement reported $20,000 of depreciation expense and a $10,000 gain on the sale of land. The noncurrent assets from the company’s comparative balance sheet are as follows: 12/31/2020 12/31/2021 Increase(Decrease) Land $ 125,000 $ 225,000 $(100,000) Equipment 500,000 400,000 100,000 Accumulated depreciation—equipment (120,000) (100,000) 20,000 There were no disposals of equipment, and all purchases of equipment were for cash. Prepare the “Cash flows from investing activities” section of the statement of cash flows. (note: you are preparing only one section of the Statement of Cash Flows)
Mercury Inc. reported net income of $100,000 for 2020. In addition, the income statement reported $20,000 of
12/31/2020 12/31/2021 Increase(Decrease)
Land $ 125,000 $ 225,000 $(100,000)
Equipment 500,000 400,000 100,000
Accumulated depreciation—equipment (120,000) (100,000) 20,000
There were no disposals of equipment, and all purchases of equipment were for cash. Prepare the “Cash flows from investing activities” section of the statement of cash flows. (note: you are preparing only one section of the Statement of Cash Flows)
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