Income statement items: Gain on sale of marketablesecurities....................
ID: 2433385 • Letter: I
Question
Income statement items:
Gain on sale of marketablesecurities.........................$42,000
Loss on sales of plantassets......................................33,000
Analysis of balance sheet accounts:
Marketable securities account:
Debitentries..............................................................$75,000
Creditentries..............................................................90,000
Notes receivable account;
Debitentries..............................................................210,000
creditentries.............................................................162,000
Plant and Equipment accounts:
Debit entries to plant assetaccounts............................196,000
Credit entires to plant assetaccounts...........................120,000
Debit entries to accumulated depreciationaccounts........75,000
Prepare the investing activities statement ofcash flows, showing supporting computations
for the amounts of (1) proceeds from sales ofmarketable assets and (2) proceeds from sales of plant assets.Place brackets around numbers representing cashoutflows.
Explanation / Answer
cash flow from operating activities 1.depreciation 75,000 2. decrease in marketable securities 15,000 3. increase in notes receivable (48,000) 4. loss ofsale 33,000 5. gain onasset (15,000) cash flow from investing activities purchase of property plant and equipment(76,000) ;196,000-120,000=76,000