Homework Help is Here – Start Your Trial Now!
Business
Accounting
XYZ Company reported net income of P9,000,000 for the current year. Changes occurred in certain accounts as follows: Equipment - P750,000 increase; Accumulated depreciation P1,200,000 increase; Notes payable - P900,000 increase. During the year, the entity sold equipment costing P750,000, with a carrying value P390,000 for a gain of P150,000. In December of the current year, the entity purchased equipment costing P1,500,000 with P600,000 cash and a 12% note payable for the remainder. What amount should be reported as net cash used in investing activities?

XYZ Company reported net income of P9,000,000 for the current year. Changes occurred in certain accounts as follows: Equipment - P750,000 increase; Accumulated depreciation P1,200,000 increase; Notes payable - P900,000 increase. During the year, the entity sold equipment costing P750,000, with a carrying value P390,000 for a gain of P150,000. In December of the current year, the entity purchased equipment costing P1,500,000 with P600,000 cash and a 12% note payable for the remainder. What amount should be reported as net cash used in investing activities?

Managerial Accounting: The Cornerstone of Business Decision-Making
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 37E: During 20X1, Craig Company had the following transactions: a. Purchased 300,000 of 10-year bonds...
See similar textbooks
icon
Related questions
Question

XYZ Company reported net income of P9,000,000 for the current year. Changes occurred in certain accounts as follows: Equipment - P750,000 increase; Accumulated depreciation P1,200,000 increase; Notes payable - P900,000 increase. During the year, the entity sold equipment costing P750,000, with a carrying value P390,000 for a gain of P150,000. In December of the current year, the entity purchased equipment costing P1,500,000 with P600,000 cash and a 12% note payable for the remainder. What amount should be reported as net cash used in investing activities?

Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS