Cathay Pacific Airways reported the following information in the notes to a recent annual report Hasbro Inc. Cathay Pacific Airways (in Hong Kong dollars):

Required:
1. Reconstruct the information in Note 11 into T-accounts for fixed assets and accumulated depreciation:

2. Compute the amount of cash the company received for disposals during 2008. Show computations.
3. Compute the percentage of depreciation expense to cash flows from operations for 2008. How do you interpret this percentage?

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CATHAY PACIFIC AIRWAYS Notes to the Accounts 11. Fixed Assets (in millions of HK dollars) Balance, beginning of year Additional acquisitions Depreciation expense Disposals Balance, end of year Acquisition Cost Accumulated Depreciation $107,454 $45,066 9,202 5,169 (3,376) $113,280 (2.994) $47,241 Cathay Pacific also reported the following cash flow details: Cash Flow from Operating Activities (in millions of HK dollars) 2008 2007 Operating (loss)/Profit $(7,929) $7,739 Adjustments for: Depreciation of fixed assets Loss on disposal of fixed assets 5,169 4,831 245 70 Other adjustments (summarized) Cash generated from operations 6,397 3,461 $3,882 $16,101