Question

On July 15, 2021, M.W. Morgan Distribution sold land for $41.0 million that it had purchased in 2016 for $26.0 million.

Required:
What would be the amount(s) related to the sale that Morgan would report in its statement of cash flows for the year ended December 31, 2021, using the direct method?

Answer 1

$41.0 million

Step-by-step explanation:

Calculation to determine the amount(s) related to the sale that Morgan would report in its statement of cash flows for the year ended December 31, 2021, using the direct method

DIRECT METHOD:

CASH FLOWS FROM INVESTING ACTIVITIES:

Cash proceeds received from sale of land $41.0 million

Therefore the amount(s) related to the sale that Morgan would report in its statement of cash flows for the year ended December 31, 2021, using the direct method is $41.0 million