The Beck Boat Co. equipment account increased by $20,000 and its accumulated depreciation account increased by $6,000 during fiscal year 2020. During fiscal year 2020, Beck Boat Co. sold equipment costing $42,000 with accumulated depreciation of $26,000 for $6,000 cash. Beck Boat Co. had no other noncurrent assets. What is the cash flow from investing activities (in equipment) during fiscal year 2020? Select one: a. $26,000 outflow b. $56,000 outflow c. $49,000 outflow d. $6,000 inflow e. $ 20,000 outflow
The Beck Boat Co. equipment account increased by $20,000 and its accumulated depreciation account increased by $6,000 during fiscal year 2020. During fiscal year 2020, Beck Boat Co. sold equipment costing $42,000 with accumulated depreciation of $26,000 for $6,000 cash. Beck Boat Co. had no other noncurrent assets. What is the cash flow from investing activities (in equipment) during fiscal year 2020? Select one: a. $26,000 outflow b. $56,000 outflow c. $49,000 outflow d. $6,000 inflow e. $ 20,000 outflow
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter3: Financial Statements, Cash Flow, And Taxes
Section: Chapter Questions
Problem 12P
Related questions
Question
The Beck Boat Co. equipment account increased by $20,000 and its
Select one:
a. $26,000 outflow
b. $56,000 outflow
c. $49,000 outflow
d. $6,000 inflow
e. $ 20,000 outflow
Expert Solution
Working:
Purchase of equipment = Increase in equipment account + Cost of equipment sold
= $20,000 + $42,000
= $62,000
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