The Garcia Corporation provided the following partial list of accounts, balances and activities for 2013: Garcia's income statement reported a $16,000 gain on sale of land that occurred when land that had cost $32,000 was sold for $48,000. The company also recorded a $20,000 loss on the sale of marketable securities. No additional marketable securities were purchased during the year. The company also sold equipment originally costing $12,000 with accumulated depreciation of $8,000 for $7,200. Purchases of additional land and equipment were cash transactions.
Required:
Prepare the investing activities section of the statement of cash flows.

Question

The Garcia Corporation provided the following partial list of accounts, balances and activities for 2013:  Garcia's income statement reported a $16,000 gain on sale of land that occurred when land that had cost $32,000 was sold for $48,000. The company also recorded a $20,000 loss on the sale of marketable securities. No additional marketable securities were purchased during the year. The company also sold equipment originally costing $12,000 with accumulated depreciation of $8,000 for $7,200. Purchases of additional land and equipment were cash transactions.
Required:
Prepare the investing activities section of the statement of cash flows.

Quizplus · Accepted Answer

The Answer of The Garcia Corporation provided the following partial list of accounts, balances and activities for 2013:  Garcia's income statement reported a $16,000 gain on sale of land that occurred when land that had cost $32,000 was sold for $48,000. The company also recorded a $20,000 loss on the sale of marketable securities. No additional marketable securities were purchased during the year. The company also sold equipment originally costing $12,000 with accumulated depreciation of $8,000 for $7,200. Purchases of additional land and equipment were cash transactions.
Required:
Prepare the investing activities section of the statement of cash flows.

The Garcia Corporation Provided the Following Partial List of Accounts