During the period, Sanchez Company sold some excess equipment at a loss. The following information...
90.2K
Verified Solution
Link Copied!
Question
Accounting
During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the companys accounting records:
From the Income Statement
Depreciation expense
$
1,010
Loss on sale of equipment
3,100
From the Balance Sheet
Beginning equipment
20,100
Ending equipment
10,400
Beginning accumulated depreciation
1,980
Ending accumulated depreciation
1,730
No new equipment was bought during the period.
Required:
1.
For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale. (Use the equipment and accumulated depreciation T-accounts to infer the book value of the equipment sold.)
2.
Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Operating Activities? (Input the amount as positive value.)
3.
What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing Activities? (Input the amount as positive value.)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
