(Learning Objective 6: Reporting cash fl ows for property and equipment) Assume Shoes-R-Us Corporation completed the following transactions:

a. Sold a store building for €610,000. The building had cost Shoes-R-Us €1,300,000, and at the time of the sale its accumulated depreciation totaled €690,000.

b. Lost a store building in a fi re. The building cost €350,000 and had accumulated deprecia tion of €170,000. The insurance proceeds received by Shoes-R-Us totaled €110,000.

c. Renovated a store at a cost of €120,000.

d. Purchased store fi xtures for €90,000. The fi xtures are expected to remain in service for 10 years and then be sold for €10,000. Shoes-R-Us uses the straight-line depreciation method.

For each transaction, show what Shoes-R-Us would report for investing activities on its statement of cash fl ows. Show negative amounts in parentheses.

Challenge Exercises