How should each of these acquisitions be reported on the cash flow statement? 1 answer below »

During the year, Davis Company acquired $1,000,000 of equipment to start a new product line. $500,000 of equipment was purchased for cash. $300,000 of equipment was acquired for a $30,000 downpayment with the balanced financed over 3 years. Two pieces of old equipment with a book value of $200,000 were exchanged for a new piece of equipment with a list price of $200,000.

How should each of these acquisitions be reported on the cash flow statement?

 

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