Rhonda Company reported $70,000 of net income for 2016. During the year, machinery costing $10,000 and with accumulated depreciation of $8,000 was sold at a loss of $500. Land and machinery were purchased during the year for cash. Selected account information follows:
Required:
Compute the net cash from investing activities for 2016 using the visual inspection method.

Question

Rhonda Company reported $70,000 of net income for 2016. During the year, machinery costing $10,000 and with accumulated depreciation of $8,000 was sold at a loss of $500. Land and machinery were purchased during the year for cash. Selected account information follows: 
 Required:
Compute the net cash from investing activities for 2016 using the visual inspection method.

Quizplus · Accepted Answer

The Answer of Rhonda Company reported $70,000 of net income for 2016. During the year, machinery costing $10,000 and with accumulated depreciation of $8,000 was sold at a loss of $500. Land and machinery were purchased during the year for cash. Selected account information follows: 
 Required:
Compute the net cash from investing activities for 2016 using the visual inspection method.

Rhonda Company Reported $70,000 of Net Income for 2016