Karr, Inc., reported net income of $300,000 for 2017. Changes occurred in several balance sheet accounts as follows: Equipment $25,000 increase
Inventories $20,000 decrease
Accumulated depreciation 40,000 increase
Accounts receivable 15,000 increase
Note payable 30,000 increase
Accounts payable 5,000 decrease
Additional information:
* During the current year, Karr sold equipment costing $25,000, with accumulated depreciation of
$12,000, for a gain of $5,000.
* In December of the current year, Karr purchased equipment costing $50,000 with $20,000 cash
and a 12% note payable of $30,000.
* Depreciation expense for the year was $52,000.
1. In Karr's current-year statement of cash flows, calculate the net cash provided by operating activities.
2. In Karr's current-year statement of cash flows, calculate the net cash used in investing activities.