Question - The following are selected accounts from the comparative balance sheets and other data for Good, Bad & Ugly, Inc. All balances are normal.
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December 31
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Accounts
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2016
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2015
|
|
Cash
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$76,105
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$51,000
|
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Land
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180,000
|
142,500
|
|
Equipment
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270,000
|
300,000
|
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Accumulated Depreciation, Equipment
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(75,000)
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(67,500)
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Long Term Notes Payable
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170,000
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150,000
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Common Stock, $5 par
|
185,000
|
165,000
|
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Paid in Capital in Excess of Par
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32,500
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0
|
|
Retained Earnings
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91,450
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87,500
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Equipment costing $50,000 with accumulated depreciation of $30,000 was sold for a gain of $3,500.
Additional equipment was purchased by signing a new long-term note payable.
Net income for 2016 was $35,000.
Depreciation expense for the year was $37,500.
What amount of cash proceeds from the sale of equipment will be reported in the financing activities section of the Statement of Cash Flows for fiscal year 2016?