Task $3$: Determining cash flows from investing and

operating activities $($Indirect$)$

Karr Inc. reported net income of $$300,000$ for $20x1.$ Changes occurred in several balance sheet accounts as follows:

Equipment

$$25,000$ increase

Accumulated depreciation

$40,000$ increase

Note payable

$30,000$ increase

Additional Information:

a$.$ During $20$X$1,$ Karr sold equipment that cost $$25,000$ and had accumulated depreciation of $$12,000,$ for a gain of $$5,000.$

b$.$ In December $20$X$1,$ Karr purchased equipment costing $$50,000$ with $$20,000$ cash and a $12\%$ note payable of $$30,000.$

c$.$ Depreciation expense for the year was $$52,000.$

Required:

In Karr's $20$X$1$ statement of cash flows, what should be the net cash from operating activities?

In Karr's $20$X$1$ statement of cash flows, what should be the net cash used in investing activities?