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Task 3: Determining cash flows from investing and operating activities (Indirect) ...

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Accounting

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 20X1, Karr sold equipment that cost $25,000 and had accumulated depreciation of $12,000, for a gain of $5,000.
b. In December 20X1, 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 20X1 statement of cash flows, what should be the net cash from operating activities?
In Karr's 20X1 statement of cash flows, what should be the net cash used in investing activities?
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