ABC Corporation reported net income of $300,000 for 2011. Changes occurred in several balance sheet accounts as follows:
Equipment $25,000 increase
Inventories $20,000 decrease
Accumulated depreciation $40,000 increase
Accounts receivable $15,000 increase
Note payable $30,000 increase
Accounts payable $5,000 decrease
ABC sold equipment costing $25,000, with accumulated depreciation of $12,000, for a gain of $5,000.
In december 2011 ABC purchased equipment costing $50,000, with $20,000 cash and a 12% note payable of $30,000.
Depreciation expense for the year was $52,000.
1. In ABC's 2011 statement of cash flows, calculate net cash provided by operating activities.
2. In ABC's 2011 statement of cash flows, calculate net cash used in investing activities.