Assume Flowers to Go Lid., a chain of flower shops, completed the following transactions. For each transaction,
Question:
Assume Flowers to Go Lid., a chain of flower shops, completed the following transactions. For each transaction, show what the company would report for investing activities on its statement of cash flows. Show negative amounts in parentheses.
a. Sold a building for \($600,000.\) The building had cost \($1,000,000,\) and at the time of the sale its accumulated depreciation totalled \($400,000.
b.\) Lost a store building in a fire. The warehouse cost \($300,000\) and had accumulated depreciation of \($180,000.\) The insurance proceeds received were \($120,000.
c.\) Renovated a store at a cost of \($400,000,\) paying cash.
d. Purchased store fixtures for \($60,000.\) The fixtures are expected to remain in service for five years and then be sold for \($10,000.\) Flowers to Go uses the straight-line depreciation method.
Step by Step Answer:
Financial Accounting
ISBN: 9780135433065
7th Canadian Edition
Authors: Walter Harrison, Wendy Tietz, C. Thomas, Greg Berberich, Catherine Seguin