P6-46A The excerpts that follow are adapted from financial statements of a Canadian not-for-profit organization (amounts in thousands) Balance Sheet Assets Total current assets. Property, plant, and equipment. Less accumulated depreciation Long-term investments. 60,406 61225 (22,725) 147,165 March 31 2020 2019 $277,631 $261,015 (26,909) 108.302 For the Year Ended March 31 2020 2010 Consolidated Statement of Cash Flows Operating excess of revenues over expense. 13,068 15,321 Noncash items affecting net income: Depreciation 4,184 3,748 Cash flows from investing activities Additions to property, plant, and equipment. (7.181) (8,623) Reduction of (addition to) long-term investments.. 30,003 (96,316) Requirements 1. How much was the entity's cost of property, plant, and equipment at March 31, 20207 How much was the carrying amount of property, plant, and equipment? Show computations 2. The financial statements give four pieces of evidence that the entity purchased property, plant, and equipment and sold long-term investments during 2020. What is the evidence? 3. Prepare T-accounts for Property, Plant and Equipment, Accumulated Depreciation, and Long-Term Investments. Then show all the activity in these accounts during 2020 Label each increase or decrease and give its dollar amount 4. Why is depreciation added to net income on the statement of cash flows? 2. COGS IS HU VALUE AT W THE UNITS A INCOME cort PG-46A The excerpts that follow are adapted from financial statements of a Canadian not-for-profit organization. (amounts in thousands) Balance Sheet Assets Total current assets Property, plant, and equipment. Less accumulated depreciation. Long-term investments 147,165 March 31 2020 2019 $277,631 $261,015 68.406 61.225-1 (26,909) (22,725) 108,302 For the Year Ended March 31 2020 2019 Consolidated Statement of Cash Flows Depreciation. Noncash items affecting net income Operating excess of revenues over expense.. 13,068 15,321 Cash flows from investing activities: 4,184 3,748 Additions to property, plant, and equipment. Reduction of (addition to) long-term investments. (7,181) (8.623) 38,863 T (96,316) Requirements 1. How much was the entity's cost of property, plant, and equipment at March 31, 2020? How much was the carrying amount of property, plant, and equipment? Show computations 2. The financial statements give four pieces of evidence that the entity purchased property, plant, and equipment and sold long-term investments during 2020. What is the evidence? 3. Prepare T-accounts for Property, Plant and Equipment, Accumulated Depreciation, and Long-Term Investments. Then show all the activity in these accounts during 2020. Label each increase or decrease and give its dollar amount. 4. Why is depreciation added to net income on the statement of cash flows? WETH FRI FRI SAT SUN MON TUE W