Swans Machinery Ltd reported a net profit of $3,000,000 for the year ended 30 June 2009.The following changes occurred in the balance sheet: Additional information:
During the year Swans Ltd sold equipment with a cost of $250,000 and had accumulated depreciation of $120,000 for a gain of $50,000.
On 30 June 2009 Swans Ltd purchased equipment costing $500,000 with $200,000 in cash and a note payable for $300,000.
Depreciation expense for the year was $520,000
What is the amount of net cash from operating activities and net cash used in investing activities,respectively for the year ended 30 June 2009?
A) $3,470,000; ($20,000);
B) $3,520,000; ($20,000);
C) $3,470,000; (200,000);
D) $3,520,000; ($500,000);
E) None of the given answers.

Question

Swans Machinery Ltd reported a net profit of $3,000,000 for the year ended 30 June 2009.The following changes occurred in the balance sheet:  Additional information:
During the year Swans Ltd sold equipment with a cost of $250,000 and had accumulated depreciation of $120,000 for a gain of $50,000.
On 30 June 2009 Swans Ltd purchased equipment costing $500,000 with $200,000 in cash and a note payable for $300,000.
Depreciation expense for the year was $520,000
What is the amount of net cash from operating activities and net cash used in investing activities,respectively for the year ended 30 June 2009?
A) $3,470,000; ($20,000); 
B) $3,520,000; ($20,000); 
C) $3,470,000; (200,000); 
D) $3,520,000; ($500,000); 
E) None of the given answers.

Quizplus · Accepted Answer

The Answer of Swans Machinery Ltd reported a net profit of $3,000,000 for the year ended 30 June 2009.The following changes occurred in the balance sheet:  Additional information:
During the year Swans Ltd sold equipment with a cost of $250,000 and had accumulated depreciation of $120,000 for a gain of $50,000.
On 30 June 2009 Swans Ltd purchased equipment costing $500,000 with $200,000 in cash and a note payable for $300,000.
Depreciation expense for the year was $520,000
What is the amount of net cash from operating activities and net cash used in investing activities,respectively for the year ended 30 June 2009?
A) $3,470,000; ($20,000); 
B) $3,520,000; ($20,000); 
C) $3,470,000; (200,000); 
D) $3,520,000; ($500,000); 
E) None of the given answers.

Swans Machinery Ltd Reported a Net Profit of $3,000,000 for the Year