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Hi,
Can someone help me with the following question, please? I have no idea how the possible answers were calculated. Thanks a lot.The following information relates to the non-current assets of Daylesford Co.:
2012: Cost $602,000; Accumulated depreciation ($108,000); Carry value at year-end $494,000.
2013: Cost $500,000; Accumulated depreciation ($84,000); Carry value at year-end $416,000During the 2012/13 year an asset which had originally cost $23,000 and had a carrying value of $10,000 was sold for $7,000.
What net amount should be included in the statement of cash flows for the 2013 year-end relating to the purchase of PP&E?
Select one:
a. Inflow $118,200
b. Outflow $16,200
c. Outflow $118,200
d. Inflow $7,000Cheers,
JennyJenny
You have either mis-typed it or the answer that you have given is to a different question
There are no numbers in your question that have either a “200” or an “800” so immediately options (a), (b) and (c) are immediately not possible and an inflow of $7,000 cannot relate to a “purchase” of PPE
Please check your transcription! Or the answer number
Hi Mike,
I have only copy/pasted the question – this is what I was given. I will email the publisher – I was going crazy as I couldn’t figure out the answer. Thanks again for you help. Jenny
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