In 2015,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 2015,Anderson should report the following with respect to the above transactions:

Question

Quizplus · Accepted Answer

The purchase of equipment for $363,000 is a cash outflow for investing activities, while the sale of machinery for $182,000 is a cash inflow from investing activities. The net cash used by investing activities is ($363,000 - $182,000) = $181,000. There is no information given to determine the cash provided or used by operating or financing activities, so choices A and D are incorrect.

In 2015,Anderson Company Purchased Equipment for $363,000 and Also Sold