Problem 1 - Cash Flows Investing (12 points) The information below was provided

Question

Problem 1 - Cash Flows Investing (12 points) The information below was provided by Bongo Company for 2016 and 2015. Equipment Accumulated Depreciation 12/31/16 12/31/15 Change $70,000 $62,000 8,000 39,000 30,000 9,000 If you are having difficulties seeing the above table, you can view the table as an image below: 1231/16 1213115 Change $70,000 $62,000 8,000 39,000 Equipment Accumulated Depreciation 30,000 9,000 During 2016, Bongo sold equipment with an original cost of $25,000 and accumulated depreciation of $19,000. A loss of $1,000 was recognized on the sale of equipment. Prepare the investing activities section of the statement of cash flows for 2016. Please show your work for partial credit.

Explanation / Answer

Cash flows from investing activities: sale of equipment (25000-19000-1000) 5000 Purchase of equipment -33000 (62000-25000-70000) Net cash used in investing activities -28000

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