Selected Data from the Financial Statements for the Years Ended

question 35

Essay

Selected data from the financial statements for the years ended December 31, Year 2 and Year 1, are presented below:
$$\begin{array} { l r r } & \text { Year 2 } & \text { Year 1 } \\ \text { Property, plant, and equipment }& \$ 14,100 & \$ 12,200 \\\text { Accumulated depreciation }& 4,900 & 4,700 \\\text { Investments } & 450 & 240 \\\text { Short-term debt } & 55 & 57 \\ \text { Lang-term debt }& 1,500 & 1,200 \\\text { Common shares } & 597 & 567 \\\text { Share Repurchase--common shares } & ( 21 ) & ( 21 ) \\\text { Retained earnings } & 3,522 & 3,426 \\\text { Net income } &770&713\end{array}$$ The following additional information was obtained from the company's records:
1. Cash addituns to property, plant, and equpment during Year 2 were $2,300. An additional \$250 of plant assets were acquired through debt in anoncash transaction. Depreciation expense for Year 2 was $400. Gains an disposals of property, plant and equipment during Year 2 were $40.

2. The cash proceeds from the sale of investments in Year 2 were $\$ 120$ . There was a $\$ 30$ gain an the sale of the investments.

3. Praceeds fram lang-term debt issued during Year 2 were $\$ 200$ .

4. The issuance of common shares totalled $\$ 30$ in Year 2.
-Refer to Maritime Marine Services.Assuming that the book value of the property,plant,and equipment disposed of during Year 2 was $90,what were the cash proceeds from the disposal?

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Definitions:

Beef Cattle

Cattle specifically raised for producing beef meat, distinguished from dairy cattle which are raised for milk production.

Supply of Beef

The total amount of beef that producers are willing and able to sell at a given price level.

Equilibrium Price

The price at which the quantity of a product demanded by consumers equals the quantity supplied by producers, leading to market stability.

Equilibrium Quantity

The amount of products or services available that matches the amount requested at the price where supply and demand balance.