Did DowWell buy or sell more property, plant and equipment (PPE) in 2014? If yes

Question

Did DowWell buy or sell more property, plant and equipment (PPE) in 2014? If yes then, by how much? Use the financial statements blew to answer your question.

Sold PPE in the amount of $225,500

Bought PPE in the amount of $700,000

Bought PPE in the amount of $225,500

Sold PPE in the amount of $700,000

DoWell Corporation Balance Sheet 2014 2013 Assets Current assets:    Cash $3,916,040 $4,386,040 Marketable securities $1,520,000 $1,875,000    Accounts receivable, net 3,249,500 3,055,500    Inventories 2,750,000 2,800,000         Total current assets 11,435,540 12,116,540 Net Fixed assets 2,225,500 2,000,000 Non-amortizable intangible assets 125,000 90,000         Total assets $13,786,040 $14,206,540 Liabilities and Stockholders’ Equity Current Liabilities:    Notes Payable due within one year $1,000,000 $1,000,000    Accounts payable and accrued liabilities 2,221,000 2,091,500    Federal income taxes payable 130,000 300,000         Total current liabilities 3,351,000 3,391,500 Notes payable due after one year 3,000,000 4,000,000 Long-term bonds 1,645,000 1,965,000 Stockholders’ equity:    Capital stock $1,050,000 $1,000,000    Additional paid-in capital 1,800,000 1,500,000    Retained earnings 2,940,040 2,350,040         Total stockholders’ equity 5,790,040 4,850,040         Total liabilities and stockholders’ equity $13,786,040 $14,206,540

Explanation / Answer

DowWell bought some property , plant and equipment (PPE) in 2014 -

ANSWER : Bought PPE in the amount of $700,000

Opening Balance - 2013(Net) 2,000,000 Less: Depreciation for 2014 (as per income statement) 474,500 Net balance at the end the year 1,525,500 Balance in 2014 (as per balance sheet) 2,225,500 So , PPE bought during 2014 (2225500 - 1525500) 700,000

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