eBook Video Exercise 13-6 Computing Cash Flows from Investing Activities: Plant

Question

eBook Video Exercise 13-6 Computing Cash Flows from Investing Activities: Plant Assets The T accounts for plant assets and accumulated depreciation for Street Company at the end of 2014 follow Plant Assets 130,000 Disposals 46,000 Beg. Bal Purchases End. Bal 67,200 151,200 Accumulated Depreciation Dr. Cr. 69,000 20,400 60,000 Disposals 29,400 Beg. Bal Depreciation End. Bal In addition, Street's income statement shows a gain on sale of plant assets of $8,800 Compute the amounts to be shown as cash flows from investing activities. Use the minus sign to indicate cash outflows or a decrease in cash Purchase of plant assets Sale of plant assets $(67,20 $-58,400

Explanation / Answer

Cas inflow from Sale of plant assets

Plant assets = 46,000

Less: Accumalated Depreciation = 29,400

Book Value = 16,600

Add: gain on sale of plant Assets = 8,800

Cas inflow from Sale of plant assets = 25,400

Enter positive amount only

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