Chapter 12, Problem 12.2BP

(a)

To determine

Stockholders’ equity

Stockholders’ equity is those assets that are invested by the stockholders in a business. It is referred to as the claims of the stockholders on the assets of the business. It consists of two parts: Common stock and Retained earnings.

Statement of cash flows

Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

To determine: cash inflow or outflows related to plant asset accounts reported by L Corporation in 2014.

(b)

To determine

To indicate: the classification of items that are identified as cash inflow and outflow.