Question
1. Classify each of the following items as an Operating, Investing, or Financing activity (.5 each): a. Cash paid for Interest: b. Cash received from
1. Classify each of the following items as an Operating, Investing, or Financing activity (.5 each): a. Cash paid for Interest: b. Cash received from customers: c. Cash received from stock issuance: d. Cash paid for capital expenditures: 2. State if each of the following items would be represented as an ADDITION to net income or a SUBTRACTION from net income on the SCF-Operating Activities using the indirect method: (.5 each) a. Decrease in Prepaid Insurance: b. Increase in Interest Payable: c. Gain on sale of equipment: d. Depreciation: 3. Property, Plant, and Equipment, net balance at 12/31/2021: $270,000 Property, Plant, and Equipment, net balance at 12/31/2020: $220,000 Assume all purchases of PP&E were for cash. The company reported depreciation expense of $25,000 for the year. Also, assume there was a disposal of a piece of equipment. The company received $5,000 cash for the equipment and reported a gain of $2,000 on the sale. Determine cash paid for Property, Plant, and Equipment for 2021 What is the market value of PP&E as of 12/31/2021?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started