Question

An analysis of the general ledger accounts indicates that office equipment, which cost $245,000 and on which accumulated depreciation totaled $112,500 on the date of sale, was sold for $105,900 during the year. Using this information, indicate the items to be reported on the statement of cash flows.

Transactions Section of Statement of Cash Flows Added or Deducted
$245,000 cost of office equipment ______________________________ ______________________________
$112,500 accumulated depreciation ______________________________ ______________________________
$105,900 sales price ______________________________ ______________________________
$26,600 loss on sale of equipment ______________________________ ______________________________
(assume the indirect method is used) ______________________________ ______________________________

Answer 1

Answer and Explanation:

The indication of the following items reported on the income statement is presented below:

1. Not applicable as it is not shown on the statement

2.  Not applicable as it is not shown on the statement

3. It is to be added and the same is to be shown in the cash flow from investing activities

4. . It is to be added and the same is to be shown in the cash flow from operating activities

In this way it is to be done