Analysis of Gateway, Inc. The Gateway financial statements and accompanying notes included in Appendix A can be used in analyzing purchases and sales of property, plant, and equipment.

a. What was the increase in net property, plant and equipment in 1998?

b. At December 31, 1997 and 1998, what were the individual components of property, plant and equipment, and what was the dollar amount of each? What was the amount of increase in total investment in property, plant and equipment in 1998?

c. What amount was reported in the cash flow statement as net investment in property, plant and equipment in 1998? Does this amount agree with the increase in total property, plant and equipment calculated in part b? What is the amount of the difference? What factors might cause this difference?

d. What was the amount of increase in accumulated depreciation and amortization in 1998? Depreciation and amortization expense for the year reported in the statements of cash flows was $105,524,000. Is the increase in accumulated depreciation and amortization equal to depreciation and amortization expense for the year? What is the amount of the difference? What factors might cause this difference?