Accounting · Management Accounting
A company is preparing its statement of cash flows for the year ended 31 December 20X2. Relevant extracts from the accounts are as follows: Statement of profit or loss: Depreciation: $15,000 Profit on sale of non-current assets: $40,000 Statement of financial position: Plant and machinery (cost) 20X2: $185,000 | 20X1: $250,000 Plant and machinery (depreciation) 20X2: $45,000 | 20X1: $50,000 Plant and machinery additions during the year were $35,000. What is the cash flow arising from the sale of non-current assets?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$135,000
- 2$120,000✓
- 3$100,000
- 4$40,000
Correct answer
$120,000
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