In 2009, Anderson Company purchased equipment for $363,000 and also sold some special purpose machinery with a book value of $155,000 for $182,000. In its statement of cash flows for 2009, Anderson should report the following with respect to the above transactions:

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The purchase of equipment for $363,000 is a cash outflow related to investing activities, as it is a capital expenditure. The sale of special purpose machinery for $182,000 results in a cash inflow related to investing activities, as it involves the disposal of a long-term asset. However, the book value of the machinery is already accounted for in the company's accounting records, so it does not affect the cash flow statement. Therefore, the net cash used by investing activities is $181,000 ($363,000 - $182,000). There is no information provided to suggest any effect on operating or financing activities.

In 2009, Anderson Company Purchased Equipment for $363,000 and Also