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The following selected account balances were taken...

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The following selected account balances were taken from ABC Company's general ledger at January 1, 2011 and December 31, 2011: January 1, 2011 December 31, 2011 Accounts receivable 52,000 36,000 Cash 23,000 47,000 Inventory 31,000 18,000 Accounts payable 11,000 37,000 Equipment 123,000 144,000 Salaries payable 2,000 4,000 Investments 42,000 ? Land 91,000 31,000 Mortgage payable 111,000 60,000 Common stock 110,000 125,000 Retained earnings 32,000 37,000 Additional information for 2011 appears below: 1. ABC Company reported net cash inflows from operating activities of $60,000 and net cash outflows from financing activities of $87,000 2. ABC Company sold land costing $60,000 and recorded an $8,000 loss on the sale 3. ABC Company purchased equipment for $21,000 cash 4. ABC Company purchased investments for $60,000 cash and sold investments and reported a $25,000 gain on the sale Calculate the balance in the investments account at December 31, 2011. Do not use decimals in your answer. My answer is this: Cash paid to purchase land -68,000 Cash received from the sale of land 60000 Cash paid to purchase equipment -21000 Cash received from sale of equipment 0 Cash received from investment 85000 Cash paid to purchase investment -60000 Net cash flows used in investing activities -4,000 If my answer is wrong, show me your work and the right answer. Thanks!

 

Paper#11174 | Written in 18-Jul-2015

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