Old equipment having a book value of $12,000 was sold for $10,000 cash.New equipment was purchased for $25,000 cash.Additional equipment was acquired in exchange for a $17,000 long-term note payable.The cash flow from investing activities was_____.

Question

Quizplus · Accepted Answer

The cash flow from investing activities includes cash received from the sale of old equipment ($10,000) and cash paid for new equipment ($25,000). Therefore, the net cash flow is $10,000 - $25,000 = -$15,000.

Old Equipment Having a Book Value of $12,000 Was Sold