Atkins Corporation Has Provided the Following Information for the Year

question 23

Multiple Choice

Atkins Corporation has provided the following information for the year ended December 31,2010:
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 on the equipment recorded during the year was $65,000.
Which of the following statements is correct with respect to cash flow from investing activities determination? 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.

---

Definitions:

Single Die

Refers to one of a pair of small objects, typically cube-shaped, with sides numbered from one to six, used in games of chance.

Monte Carlo

Monte Carlo methods are a broad class of computational algorithms that rely on repeated random sampling to obtain numerical results and estimate uncertain quantities.

Sample Space

The set of all possible outcomes of a statistical experiment.

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.