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During the current year, Beck Co. purchased equipment for cash of $47,000, and sold equipment with a $10,000 carrying value for a gain of $5,000. ?

How should these transactions be reported in Beck’s statement of cash flows ?

A. Cash outflow of $32,000.

B. Cash outflow of $42,000.

C. Cash inflow of $5,000 and cash outflow of $47,000.

D. Cash inflow of $15,000 and cash outflow of $47,000.

Cost Accounting US GAAP CMA
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Date Posted: 2015/08/31
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Saidul Alam
by Saidul Alam , Accountant , Akhtar Al Balushi Trad. & Cont. L.L.C

Correct answer B. Cash outflow of $42,000.

 

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