Atkins Corporation Has Provided the Following Information for the Year

question 64

Multiple Choice

Atkins Corporation has provided the following information for the year ended December 31, 2014: • The equipment account balance increased $200,000.
• The equipment accumulated depreciation account increased $35,000.
• Equipment costing $50,000 was sold during the year resulting in a $10,000 gain.
• Depreciation expense recorded on the equipment during the year was $65,000.
Which of the following statements is correct with respect to determining cash flow from investing activities? Assume that the equipment purchase and sale resulted in cash flows.

• A) A $60,000 cash inflow is reported from the equipment sale.
• B) A $200,000 cash outflow is reported for equipment purchases.
• C)A $50,000 cash outflow is reported for the equipment sale.
• D)A $250,000 cash outflow is reported for equipment purchases.

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Definitions:

Performance-outcome Expectancy

The belief that a certain level of performance will lead to a specific outcome.

Work-related Outcomes

The results or consequences that arise from one's job or professional activities, including productivity, satisfaction, and performance.

Task Performance

The execution and accomplishment of specific work activities or responsibilities assigned to an individual or team.

Instrumentality

The quality of being useful or instrumental in achieving a goal or purpose.