Blossom Construction had long-term assets before depreciation of
$850,000 on December 31, 2016 and $1,200,000 on December 31, 2017.
How much cash flow was invested in long-term assets by Blossom
during 2017?
Cash flow invested in long-term assets $______
Solution :
The Cash Flow invested in long-term assets during a year is calculated as follows :
Cash flow invested in long-term assets during a year = Closing Balance of Long Term assets - Opening Balance of Long Term assets
As per the information given in the question we have
Long term assets as on December 31, 2016 = Opening Balance of Long Term assets = $ 850,000
Long term assets as on December 31, 2017 = Closing Balance of Long Term assets = $ 1,200,000
Applying the available information in the formula we have
The Cash flow Invested in long Term assets during 2017 = $1,200,000 - $ 850,000 = $ 350,000
Thus the Cash flow Invested in long Term assets during 2017 = $ 350,000
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