Computation of Cash Flows
an Analysis of Changes in Selected

question 21

Essay

Computation of cash flows
An analysis of changes in selected balance sheet accounts of Taurus Corporation shows the following for the current year:
$$\begin{array}{l}\text { Marketable securities account: }\\\begin{array} { | l | l | } \hline \text { Debit entries } & \$ 1,600,000 \\\hline \text { Credit entries } & \$ 1,000,000 \\\hline \text { Plant and equipment accounts: } & \\\hline \text { Debit entries to asset accounts } & \$ 3,600,000 \\\hline \text { Credit entries to asset accounts } & \$ 2,800,000 \\\hline \text { Debit entries to accumulated depreciation accounts } & \\\hline \text { (resulting from sales of plant assets) } & \$ 1,300,000 \\\hline \text { Credit entries to accumulated depreciation accounts } & \\\hline \text { (representing depreciation for the current year) } & \$ 500,000 \\\hline\end{array}\end{array}$$
The income statement for the current year included the following items relating to the transactions summarized above:
$$\begin{array} { | l | l | } \hline \text { Loss on sales of marketable securities } & \$ 350,000 \\\hline \text { Gain on sales of plant assets } & \$ 650,000 \\\hline\end{array}$$
All payments and proceeds relating to these transactions were in cash. Using this information, compute the following cash flows for the current year:

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Definitions:

Intermittent Reinforcement

A conditioning schedule where a response is sometimes reinforced, leading to more robust behavioral responses.

Variable Interval Schedule

A reinforcement schedule in which a response is rewarded after an unpredictable amount of time has passed.

Behavioral Techniques

Methods or strategies used to alter or influence behaviors, often through the application of learning principles.

Negative Reinforcement

A behavioral strategy involving the removal of a stimulus to increase a desired response.