Karr, Inc. reported net income of $300,000 for 20X4. Changes occurred in several Balance Sheet accounts as follows: Equipment $25,000 increase Accumulated depreciation $40,000 increase Note payable $30,000 increase Additional information:
1. During 20X4, Karr sold equipment costing $25,000, with accumulated depreciation of $12,000, for a gain of $5,000.
2. In December 20X4, Karr purchased equipment costing $50,000 with $20,000 cash and a 12% note payable of $30,000.
3. Depreciation expense for the year was $52,000. In Karr's 20X4 Statement of Cash Flows, net cash provided by operating activities should be
Required:
1. In Karr's 2011 statement of cash flows, calculate net cash provided by operating activities.
2. In Karr's 2011 statement of cash flows, calculate net cash used in investing activities.