Problem 1 Cash Flows Investing 12 points The information be

Problem 1 - Cash Flows Investing (12 points) The information below was provided by Bongo Company for 2016 and 2015. Equipment Accumulated Depreciation 12/31/16 12/31/15 Change $70,000 $62,000 8,000 39,000 30,000 9,000 If you are having difficulties seeing the above table, you can view the table as an image below: 1231/16 1213115 Change $70,000 $62,000 8,000 39,000 Equipment Accumulated Depreciation 30,000 9,000 During 2016, Bongo sold equipment with an original cost of $25,000 and accumulated depreciation of $19,000. A loss of $1,000 was recognized on the sale of equipment. Prepare the investing activities section of the statement of cash flows for 2016. Please show your work for partial credit.

Solution

Cash flows from investing activities: sale of equipment (25000-19000-1000) 5000 Purchase of equipment -33000 (62000-25000-70000) Net cash used in investing activities -28000