Question

Balance sheet data for Kilroy Company for 2022 appears below:

                               January 1, 2022     December 31, 2022
ASSETS:
  Cash                             27,000               43,000
  Accounts receivable              39,000               26,000
  Inventory                        42,000               88,000
  Prepaid insurance                21,000               29,000
  Land                             37,000               72,000
  Equipment                        61,000               94,000
  Accumulated depreciation        <14,000>             <25,000>

LIABILITIES + EQUITY:
  Accounts payable                 33,000               41,000
  Income taxes payable             21,000               15,000
  Unearned revenue                 25,000               39,000
  Notes payable                    51,000               75,000
  Common stock                     34,000               93,000
  Retained earnings                49,000               64,000

Kilroy Company's 2022 income statement is given below:

  Sales revenue                               329,000
  Cost of goods sold                          242,000
  Depreciation expense                         11,000
  Insurance expense                            16,000
  Loss on sale of land                         22,000
  Income tax expense                           10,000
  Net income                                   28,000

Kilroy Company purchased land for $69,000 cash during 2022.

Calculate the net cash flow from investing activities reported by
Kilroy Company in its 2022 statement of cash flows. If your answer
is negative, place a minus sign in front of your answer with no
spaces in between (e.g., -1234).

Answer 1

• Working #1

Ending Balance of Equipment - 31 Dec 2022	$            94,000.00
Less: beginning Balance of Equipment 1 Jan 2022	$            61,000.00
Equipment purchased during 2022	$            33,000.00

• Working #2

Land Balance on Jan 1, 2022	$            37,000.00
Land purchased during 2022	$            69,000.00
Total	$          106,000.00
Less: Land Ending balance on 31 Dec , 2022	$            72,000.00
Cost of Land Sold	$           34,000.00
Less: Loss on Land Sold (from Income Statement data)	$            22,000.00
Cash proceeds from sale of land	$            12,000.00

• Answer

Statement of Cash Flows - Partial
Cash Flows from Investing Activities
Purchase of Equipment (See Working #1)	$          (33,000.00)
Sale of Land (See Working #2)	$            12,000.00
Net Cash flows or Net Cash used by Investing Activities	$          (21,000.00)