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Reporting changes in Equipment on Statement of Cash Flows An analysis of the general ledger accounts...

Reporting changes in Equipment on Statement of Cash Flows

An analysis of the general ledger accounts indicates that delivery equipment, which cost $80,000 and on which accumulated depreciation totaled $36,000 on the date of sale, was sold for $37,200 during the year.

Using this information, indicate the items to be reported on the statement of cash flows.

Transaction Section of Statement of Cash Flows Added or Deducted
$80,000 cost of office equipment
$36,000 accumulated depreciation
$37,200 sales price
$6,800 loss on sale of equipment
(assume the indirect method is used)
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Answer #1

Answer : items to be reported on the statement of cash flows

Item Section of statement of Cash Flow Added or Deducted

Sale of Equipment Cash Flow from Investing Activities Added $ 37,200

Note :- This is cash inflow and will be added to cash inflow from investing Activities. Amount will be sale price $ 37,200.

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