1. Paragon Company is preparing CFS for the year ended December 31, 2015. It has the following balances:

Dec 31, 2014

Dec 31, 2015

Machinery

$250,000

$320,000

Accumulated Depreciation

102,000

120,000

Loss on sale of machinery

4,000

During 2015, Paragon sold for $26,000 a machine that cost $40,000, and purchased several other items of machinery.

Required:

a. How much depreciation expense was recorded on machinery for 2015?

b. What was the amount of machinery purchased in 2015?

2. Haggard, Inc. reported net income of $300,000 for 2015. Changes occurred in several balance sheet accounts:

Equipment

$25,000 increase

Accumulated depreciation

40,000 increase

Note payable

30,000 increase

Additional information:

i. During 2015 Haggard sold equipment that cost $25,000 and had accumulated depreciation of $12,000, for a gain of $5,000.

ii. In December 2015 Haggard purchased equipment costing $50,000 with $20,000 cash and a 12% note payable of $30,000.

iii. Depreciation expense for the year was $52,000.

Required:

a. In Haggard's 2015 statement of cash flows, what should be CFO?

b. In Haggard's 2015 statement of cash flows CFI?