ABC Corporation reported net income of $300,000 for 2011. Changes occurred in several balance sheet accounts as follows:
Equipment $25,000 increase
Inventories $20,000 decrease
Accumulated depreciation $40,000 increase
Accounts receivable $15,000 increase
Note payable $30,000 increase
Accounts payable $5,000 decrease
ABC sold equipment costing $25,000, with accumulated depreciation of $12,000, for a gain of $5,000.
1. In ABC's 2011 statement of cash flows, calculate net cash provided by operating activities.
2. In ABC's 2011 statement of cash flows, calculate net cash used in investing activities.
1. In ABC's 2011 statement of cash flows, calculate net cash provided by operating ...
This solution is a step-by-step breakdown of how to calculate the net cash flows from operating activities and investing activities for ABC Company.