Question

Bramble Corp. reported net income of $87800 for the year ended December 31, 2021. Included in net income were depreciation expense of $16500 and a gain on sale of equipment of $3600. The equipment had an historical cost of $80500 and accumulated depreciation of $48400. Each of the following accounts increased during 2021: Land $10900 Prepaid rent $14000 Available-for-sale securities $2000 Bonds payable $9500 What is the amount of cash provided by or used by investing activities for Bramble Corp. for the year ended December 31, 2021?

Answer 1

net cash provided by investing activities $22,800

Step-by-step explanation:

the carrying value of the equipment = $80,500 - $48,400 = $32,100

the sales price of the equipment was $32,100 + $3,600 (gain on sale) = $35,700

land was purchased for $10,900

available for sale securities were purchased fro $2,000

total cash flows from investing activities = $35,700 (cash proceeds from sales of equipment) - $10,900 (land purchased) - $2,000 (AFS securities purchased) = $22,800