During the year,the Moyers Company reported the following in 2014: property,plant and equipment Equipment account increased by $25,000 and the A;accumulated Ddepreciation account increased by $2,000.During the year,In addition,the company sold equipment,which that originally cost $12,000 and,and had $9,000 of accumulated depreciation,for $4,500. What will Moyers Company report aswas the additions cash outflow to purchaseproperty,plant,and equipment on its 2014 statement of cash flows?
A) $25,000
B) $37,000
C) $29,500
D) $13,000

Question

Quizplus · Accepted Answer

Beginning balance + Cash outflow to purchase equipment - Cost of equipment sold = Ending balance
The Equipment account increased by $25,000 during the year.To simplify the equation,assume that the beginning balance is zero and the ending balance is $25,000.
$0 + Cash outflow to purchase equipment - $12,000 = $25,000
Cash outflow to purchase = $25,000 + $12,000 = $37,000
25,000 + 12,000 = 37,000
Rewrote feedback to simplify.JMF
25,000 + 12,000 = 37,000
Rewrote feedback to simplify.JMF

During the Year,the Moyers Company Reported the Following in 2014