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15 May, 18:33

Five years ago, Lewis Equipment purchased equipment costing $212,000. Two years ago, the firm paid $32.000 for updates to that equipment. This year, the firm sold the equipment for $189.000.

Which of these cash flows is (are) cash inflows to Lewis Equipment? Click the answer you think is right

a.$212,000 original cost plus $32,000 in updates

b.$32,000 updates

c.$212,000 original cost

d.$189,000 sale price

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Answers (1)
  1. 15 May, 21:11
    0
    d.$189,000 sale price

    Explanation:

    Investing activities: It records operations that include buying and selling long-term properties. The buying is a cash outflow whereas the sale is a cash inflow.

    Since the equipment is sold this year for $189,000 that is to be reported in the investing activities under the cash flow statement. This amount should be recorded with a positive sign.

    The other information is not relevant.
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