Exercise 121 Milner Co. sold a machine that cost $72,000 and had a book value of
ID: 2546279 • Letter: E
Question
Exercise 121
Milner Co. sold a machine that cost $72,000 and had a book value of $39,000 for $61,000. Data from Milner's comparative balance sheets are:
Complete the cash flow statement below: (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Milner Co.
Partial Statement of Cash Flows
For the Year Ended December 31, 2015
Cash flows from operating activities
Cash flows from investing activities
12/31/15 12/31/14 Machinery $818,000 $670,000 Accumulated depreciation 195,000 112,000Explanation / Answer
Cash flows from operating activities: Depreciation Expense 116000 =(195000-112000)+(72000-39000) Gain on Sale of Machinery -22000 =39000-61000 94000 Cash flows from investing activities: Sale of Machinery 61000 Purchase of Machinery -220000 =(670000-818000)-72000 -159000