A machine with a cost of $100,000 and accumulated depreciation of $98,000 is sold for $70,000 cash. The amount that should be re

Question

mafiozo [28]

3 years ago

7

A machine with a cost of $100,000 and accumulated depreciation of $98,000 is sold for $70,000 cash. The amount that should be re

ported as a source of cash under cash flows from investing activities is _____.

Business

1 answer:

Reptile [31] · Answer 1 · 2021-11-19T22:30:33+03:00

Answer:

$70,000

Explanation:

cash flows from investing activities generally refers to money made or spent on long-term assets the company has purchased or sold. Investing transactions generate cash outflows, such as capital expenditures for plant, property and equipment, business acquisitions and the purchase of investment securities. Inflows come from the sale of non- current assets such as machines and equipment, businesses and investment securities. For investors, the most important item in this category is capital expenditures, made to ensure the proper maintenance of, and additions to, a company's physical assets to support its efficient operation and competitiveness.

So based on the above discussion, the amount that should be reported in cash flow from investing activities is cash inflow from purchase of machine which is "$70,000"