Braden and Sons, Inc. paid cash to purchase equipment costing $342,000 this year. Also this...
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Braden and Sons, Inc. paid cash to purchase equipment costing $342,000 this year. Also this year, the company sold for $70,000 cash, equipment that originally cost $230,000 five years ago. How should these transactions be listed in the statement of cash flows?
Braden can combine the transactions and show a decrease to cash for $112,000.
Braden can combine the transactions and show a decrease to cash for $272,000.
The purchases and the sales of equipment must be shown separately as a decrease to cash for $572,000 (purchase) and an increase of $70,000 (sale).
The purchases and the sales of equipment must be shown separately as a decrease to cash for $342,000 (purchase) and an increase of $70,000 (sale).
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