Prepare the investing activities section of the statement

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Question

Prepare the investing activities section of the statement of cash flows.

The following selected account balances relate to the plant asset accounts of Waihi Beach Surfboards Pty Ltd at year-end.

                                                            2018    2017

Accumulated depreciation-buildings  $125 000   $100 000

Accumulated depreciation-equipment  100 000   97 500

Buildings  500 000   500 000

Depreciation expense  47 750   40 000

Equipment  200 000   177 500

Land  485 000   425 000

Gain on sale of equipment  3 000   -

Additional information:

In 2018, Waihi Beach Surfboards Pty Ltd purchased $50 000 of equipment and $60 000 of land for cash.

Waihi Beach Surfboards Pty Ltd also sold equipment in 2018. (Hint: Reconstruct the accumulated depreciation account to determine carrying value and then determine the proceeds from sale of equipment.)

Reference no: EM132381042

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