Answer:
Flows Added
Oct. 4: Proceeds from Sale of fixed asset $151,000
Oct. 4: Gain on sale of fixed asset <em> </em>$22,000
Flows Deducted
Mar. 12: Purchase of fixed asset $274,000
Explanation:
The Cash flow statement is prepared under the following headings :
- Cash flow from operating activities
- Cash flow from investing activities
- Cash flow from financing activities
Therefore form the transactions we need to establish what amount fall in which category.
Here is an extract of the Cash flow statement based on the given data
Cash flow from Operating Activities
<em>Adjustment to non-cash items </em>
Gain on sale of asset<em> </em>($151,000 - $129,000) <em> </em>$22,000
Cash flow from Investing Activities
Purchase of Asset ($274,000)
Proceeds from sale of Asset $151,000
Cash flow from Financing Activities
