22. Atkins Corporation has provided the following information for the year ended

Question

22. Atkins Corporation has provided the following information for the year ended December 31, 2016 The equipment account balance increased by $215,000 from the beginning of the year to the end of the year The equipment accumulated depreciation account balance increased by $36,500 from the beginning of the year to the end of the year Equipment costing $53,000 was sold during the year resulting in a $12,250 gain. Depreciation expense recorded on the equipment during the year was $67,250. Which of the following statements is correct with respect to determining cash flow from investing activities? Assume that the equipment purchase and sale resulted in cash flows. A $215,000 cash outflow is reported for equipment purchases. O A $65,250 cash inflow is reported from the equipment sale. O A $268,000 cash outflow is reported for equipment purchases. O A $53,000 cash outflow is reported for the equipment sale

Explanation / Answer

Equipment purchase -268000 =215000+53000 Equipment sold 34500 =12250+53000-(67250-36500) Net cash flow -233500 A $268000 cash outflow is reported for Equipment purchases

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