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:

---

Definitions:

Focus Groups

A qualitative research method involving small, diverse groups of people discussing specific topics of interest.

Quantitative Research

A systematic empirical investigation of observable phenomena via statistical, mathematical, or computational techniques to gather quantifiable data and express it numerically.

U.S. Census Bureau

A principal agency of the U.S. Federal Statistical System, responsible for producing data about the American people and economy.

Online Surveys

Tools or platforms used to collect data, opinions, or feedback from respondents over the Internet for research, marketing, or educational purposes.