Question

1. Given the amounts below, calculate the Total Cash from (for) Investing Activities on the Statement of Cash Flows.

Cash Collected from Customers	$300,000
Issuance of Stock	$120,000
Purchase of Equipment	$45,000
Proceeds from Sale of Land	$60,000

2. On-A-Roll, Inc., bought machinery at a cost of $72,000 with a salvage value of $4,000 and useful life of 10 years. Calculate Depreciation Expense on the income statement for the year ended Year 2 using the straight-line method.

ROUND ANSWER TO NEAREST DOLLAR. DO NOT INCLUDE $, NEGATIVE SIGN, OR PARENTHESES IN YOUR ANSWER

Answer 1

1)	Cash flow from Investing Activities
	Purchase of equipment				$ -45,000.00
	Proceeds from sale of land				$ 60,000.00
	Cash provided by Investing Activities				$ 15,000.00

2)	Cost			$ 72,000.00
	Salvage Value			$   4,000.00
	Depreciable Cost			$ 68,000.00
	Useful Life			10
	Depreciation Expense			$   6,800.00
	As the company is following straight line method
	of charging depreciation, the depreciation expense
	that'll be charged to Income Statement will be $ 6800 only