Computation of Cash Flows
an Analysis of Changes in Selected

question 162

Essay

Computation of cash flows
An analysis of changes in selected statement of financial position accounts of Gable Corporation shows the following for the current year:
$$\begin{array}{|l|l|}\hline\text { Equity Securities accourt }\\\hline \text { Debit entries } & \$ 250,000 \\\hline \text { Credit entries } & \$ 400,000 \\\hline \text { Property, Plart, ardd Equiprnent accourts: } & \\\hline \text { Debit entries to asset accourits } & \$ 700,000 \\\hline \text { Credit entries to asset accounts } & \$ 900,000 \\\hline \begin{array} { c } \text { Debit entries to accurmulated depreciation accournts } \\\text { (resulting from sale of PPE assets) }\end{array} & \$ 300 , 000 \\\hline \begin{array} { c } \text { Credit entries to accurmulated depreciation accourts } \\\text { (representing depreciation for the curent year) }\end{array} & \$ 125,000 \\\hline\end{array}$$ The income statement for the current year included the following items relating to the transactions summarized above:
$\begin{array}{|l|r|}\hline \text { Loss on sale of equity securities } & \$ 85,000 \\\hline \text { Gain on sale of property, plant, and equipment } & \$ 150,000 \\\hline\end{array}$ All payments and proceeds relating to these transactions were in cash. Using this information, compute the following cash flows for the current year:
$\begin{array}{|l|l|}\hline \text { (a) Purchases of equity securities } & \$\_\_\_ \\\hline \text { (b) Proceeds from sale of equity securities } & \$\_\_\_ \\\hline \text { (c) Purchases of property, plant, and equipment } & \$ \_\_\_\\\hline \text { (d) Proceeds from sale of property, plant, and equipment } & \$\_\_\_\\\hline\end{array}$

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Definitions:

Deposit Only

A banking feature allowing for the deposit of funds into an account but not permitting withdrawals without specific authorization.

Indorsement

Indorsement refers to the act of signing one's name on the back of a negotiable instrument, such as a check, thereby transferring rights or title to another party.

Film Arts

The field concerned with the creation, analysis, and critique of films as a form of artistic expression.

Conditional Indorsement

An endorsement on a negotiable instrument that specifies conditions under which the endorser can be held liable.