Financial Accounting, 8th Edition
8th Edition
ISBN: 9780078025556
Author: Robert Libby, Patricia Libby, Daniel Short
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 12, Problem 12E
(Chapter Supplement B) Computing and Reporting Cash Flow Effects of Sale of Plant and Equipment
During two recent years Perez Construction, Inc., disposed of the following plant and equipment:
| Year 1 | Year 2 | |
| Plant and equipment (at cost) | $ 75,000 | $13,500 |
| 40,385 | 3,773 | |
| Cash received | 17,864 | 12,163 |
| Gain (loss) on sale | (16,751) | 2,436 |
Required:
- 1. Determine the cash flow from the sale of property for each year that would be reported in the investing activities section of the cash flow statement.
- 2. Perez uses the indirect method for the operating activities section of the cash flow statement. What amounts related to the sales would be added or subtracted in the computation of Net
Cash Flows from Operating Activities for each year?
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Students have asked these similar questions
24
Georgia Peach has the following information regarding the sale of its equipment:
Sales price
$8,000
Cost
$25,000
Accumulated depreciation
$19,000
Which of the following statements is true regarding how the above information would be reported on Georgia's statement of cash flows?
Group of answer choices
Loss on sale of plant asset will be $17,000
Gain on sale of plant asset will be $2,000
Depreciation expense will be $19,000
Cash received from sale of plant asset will be $25,000
prepare the balance sheet
Chapter 12 Solutions
Financial Accounting, 8th Edition
Ch. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - What are the major categories of business...Ch. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Compare the two methods of reporting cash flows...Ch. 12 - Prob. 10Q
Ch. 12 - Prob. 11QCh. 12 - What are noncash investing and financing...Ch. 12 - Prob. 13QCh. 12 - Prob. 1MCQCh. 12 - Prob. 2MCQCh. 12 - Prob. 3MCQCh. 12 - Prob. 4MCQCh. 12 - Prob. 5MCQCh. 12 - Prob. 6MCQCh. 12 - Prob. 7MCQCh. 12 - Prob. 8MCQCh. 12 - Prob. 9MCQCh. 12 - Prob. 10MCQCh. 12 - Prob. 1MECh. 12 - Determining the Effects of Account Changes on Cash...Ch. 12 - Prob. 3MECh. 12 - Prob. 4MECh. 12 - Prob. 5MECh. 12 - Prob. 6MECh. 12 - Prob. 7MECh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Inferring Balance Sheet Changes from the Cash Flow...Ch. 12 - (Chapter Supplement B) Computing and Reporting...Ch. 12 - During the period, Sanchez Company sold some...Ch. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - Prob. 18ECh. 12 - Prob. 19ECh. 12 - Prob. 20ECh. 12 - Prob. 21ECh. 12 - Prob. 22ECh. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4PCh. 12 - Prob. 5PCh. 12 - Prob. 6PCh. 12 - Prob. 1APCh. 12 - Prob. 2APCh. 12 - Prob. 3APCh. 12 - Prob. 1CPCh. 12 - Prob. 2CPCh. 12 - Prob. 3CPCh. 12 - Prob. 4CPCh. 12 - Prob. 5CPCh. 12 - Prob. 6CPCh. 12 - Prob. 1CC
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