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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