In 2013,Daytona 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 2013,Daytona should report the following with respect to the above transactions:

Question

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The purchase of equipment for $363,000 represents a cash outflow from investing activities, while the sale of the special purpose machinery for $182,000 represents a cash inflow from investing activities. The net result is a cash outflow of $181,000 from investing activities. There is no information to suggest that these transactions would affect operating or financing activities.

In 2013,Daytona Company Purchased Equipment for $363,000 and Also Sold