E12-14 (Algo) (Supplement B) Computing and Reporting Cash Flow Effects of the Sale of Equipment During...

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E12-14 (Algo) (Supplement B) Computing and Reporting Cash Flow Effects of the Sale of Equipment During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the company's accounting records: From the Income Statement Depreciation expense Loss on sale of equipment From the Balance Sheet Beginning equipment Ending equipment Beginning accumulated depreciation Ending accumulated depreciation No new equipment was bought during the period. Required: $ 840 4,300 20,700 10,700 1,980 1,790 1. For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale. (Use the equipment and accumulated depreciation T-accounts to infer the book value of the equipment sold.) 2. Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Operating Activities? 3. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing Activities? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale. (Use the equipment and accumulated depreciation T-accounts to infer the book value of the equipment sold.) Cost of equipment sold Accumulated depreciation on sold equipment Cash received from sale Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Operating Activities? The cash received from sale of equipment gain on sale of equipment loss on sale of equipment of d 1 would be Required 3 > Required 1 Required 2 Required 3 What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing Activities? The cash received from sale of equipment gain on sale of equipment loss on sale of equipment of 2 would be Required 3 E12-14 (Algo) (Supplement B) Computing and Reporting Cash Flow Effects of the Sale of Equipment During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the company's accounting records: From the Income Statement Depreciation expense Loss on sale of equipment From the Balance Sheet Beginning equipment Ending equipment Beginning accumulated depreciation Ending accumulated depreciation No new equipment was bought during the period. Required: $ 840 4,300 20,700 10,700 1,980 1,790 1. For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale. (Use the equipment and accumulated depreciation T-accounts to infer the book value of the equipment sold.) 2. Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Operating Activities? 3. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing Activities? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale. (Use the equipment and accumulated depreciation T-accounts to infer the book value of the equipment sold.) Cost of equipment sold Accumulated depreciation on sold equipment Cash received from sale Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Operating Activities? The cash received from sale of equipment gain on sale of equipment loss on sale of equipment of d 1 would be Required 3 > Required 1 Required 2 Required 3 What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing Activities? The cash received from sale of equipment gain on sale of equipment loss on sale of equipment of 2 would be Required 3