(Learning Objectives 3, 4: Compute investing and financing amounts for the state

Question

(Learning Objectives 3, 4: Compute investing and financing amounts for the statement of cash flows) Compute the following items for the statement of cash flows: a. Beginning and ending Plant Assets, Net, are $125,000 and $115,000, respectively. Depreciation for the period was $19,000, and purchases of new plant assets were $45,000. Plant assets were sold at a $10,000 gain. What were the cash proceeds of the sale? b. Beginning and ending Retained Earnings are $44,000 and $69,000, respectively. Net income for the period was $61,000, and stock dividends were $10,000. How much were cash dividends?

Explanation / Answer

Solution-

Details Amount($) Beginning Plant Assets 125000 Less-Depreciation 19,000 Add-Purchase of new plant assets 45000 Value of Plant 151,000 Ending Plant Assets 115000 Cost of plant sold(151,000-115,000) 36,000 Add-Gain 10,000 Cash proceeds of the sale 46,000

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