Computation of Cash Flows
an Analysis of Changes in Selected

question 112

Essay

Computation of cash flows
An analysis of changes in selected balance sheet accounts of Gable Corporation shows the following for the current year:
$$\begin{array}{l}\text { Marketable Securities account: }\\\begin{array} { | l | l | } \hline \text { Debit entries } & \$ 250,000 \\\hline \text { Credit entries } & \$ 400,000 \\\hline \text { Plant and equipment accounts: } & \\\hline \text { Debit entries to asset accounts } & \$ 700,000 \\\hline \text { Credit entries to asset accounts } & \$ 900,000 \\\hline \text { Debit entries to accumulated depreciation accounts } & \\\hline \text { (resulting from the sale of plant assets } & \$ 300,000 \\\hline \text { Credit entries to accumulated depreciation accounts } & \\\hline \text { (representing depreciation for the current year) } & \$ 125,000 \\\hline\end{array}\end{array}$$
The income statement for the current year included the following items relating to the transactions summarized above:
$$\begin{array} { | l | r | } \hline \text { Gain on sales of marketable securities } & \$ 85,000 \\\hline \text { Loss on sales of plant assets } & 150,000 \\\hline\end{array}$$
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:

Employees

Individuals who work for another person or company in exchange for compensation, under the direction and control of their employer.

NLRB

The National Labor Relations Board, a U.S. government agency responsible for enforcing U.S. labor laws in relation to collective bargaining and unfair labor practices.

Delay Tactics

Strategies or actions taken to slow down or postpone a process, often used in negotiations or legal contexts to gain an advantage or simply to buy time.

Employers

Individuals or entities that hire people to perform services or work in exchange for compensation.