QS 16-4 Indirect: Computing cash from operations LO P2 MOSS COMPANY Selected Balance Sheet Information December 31, 2017 and 2016 2017 2016 Current assets Cash $88,150 $30,300 Accounts receivable 28,500 39,000 Inventory 63,500 54,800 Current liabilities Accounts payable 37,400 29,200 Income taxes payable 2,400 2,900 MOSS COMPANY Income Statement For Year Ended December 31, 2017 Sales $ 550,000 Cost of goods sold 345,600 Gross profit 204,400 Operating expenses Depreciation expense $ 43,000 Other expenses 125,500 168,500 Income before taxes 35,900 Income taxes expense 12,900 Net income $ 23,000 Use the information above to calculate this company's cash flows from operating activities using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) Cash flows from operating activities Adjustments to reconcile net income to operating cash flow 0 0 $ During 2017, equipment with a book value of $43,000 and an original cost of $225,000 was sold at a loss of $3,600. 1. How much cash did Anders receive from the sale of equipment? Cash received from the sale of equipment 2. How much depreciation expense was recorded on equipment during 2017? Depreciation expense 3. What was the cost of new equipment purchased by Anders during 2017? Use the following information for the Quick Study below. The plant assets section of the comparative balance sheets of Anders Company is reported below. 2016 ANDERS COMPANY Comparative Balance Sheets 2017 Plant assets Equipment $ 195,000 Accum. Depr.-Equipment (106,000) Equipment, net $ 89,000 Buildings $ 395,000 Accum. Depr.-Buildings (109,000) Buildings, net $ 286,000 $ 285,000 (216,000) $ 69,000 $ 415,000 (294,000) $ 121,000 QS 16-5 Indirect: Computing investing cash flows LO P2 During 2017, equipment with a book value of $43,000 and an original cott of $225,000 was sold at a loss of $3,600 1. How much cash did Anders receive from the sale of equipment? 2016 ANDERS COMPANY Comparative Balance Sheets 2017 Plant assets Equipment $ 195,000 Accun. Depr.-Equipment (106,000) Equipment, net $ 89,000 Buildings $ 395,000 Accum. Depr.-Buildings (109.000). Buildings, net $ 286,000 $ 285,000 (216,000) $ 69,000 $ 415,000 (294,000) $ 121,000 QS 16-6 Indirect: Computing investing cash flows LO P2 During 2017, a building with a book value of $73,000 and an original cost of $315,000 was sold at a gain of $63,000. 1. How much cash did Anders receive from the sale of the building? 2. How much depreciation expense was recorded on buildings during 2017? 3. What was the cost of buildings purchased by Anders during 2017? 1. 2. 3. Cash received from the sale of building Depreciation expense Purchase of building