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:
$\begin{array}{|l|l|}\hline \text { (a) Purchases of equity securities } & \$\_\_\_ \\\hline \text { (b) Proceeds from sale of equity securities } & \$\_\_\_ \\\hline \text { (c) Purchases of property, plant, and equipment } & \$ \_\_\_\\\hline \text { (d) Proceeds from sale of property, plant, and equipment } & \$\_\_\_\\\hline\end{array}$

Understand and differentiate between various compounding frequencies and their impacts on investments and loans.

Evaluate and compare different payment streams under varying interest rates to make informed financial decisions.

Identify the financial implications of mortgages, including total interest paid and balance calculation.

Comprehend the process of planning for significant financial expenditures through savings and investments.

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Definitions:

CPT Manual

The Current Procedural Terminology manual, a comprehensive listing of medical procedural codes used by healthcare providers to report and bill medical services and procedures.

E/M

Stands for Evaluation and Management; coding used in healthcare to categorize and bill for patient visits and consultations.

New

Describes something that has recently been created, discovered, or introduced, often implying novelty or innovation.

Annual Physical

A yearly health check-up with a healthcare provider to assess overall health and monitor for medical issues.