QS 16-4 Indirect: Computing cash from operations LO P2 ROSS COMPANY Selected balance Sheet Information December 11, 2017 and 2016 2014 592,150 Current assets Cash Accounts receivabile Inventory Current 1bilities Accounts payable Income taxes payable $34,300 55,600 67,500 45,400 2,500 . MOSS COW Income Statement For Year Ended December 31, 2017 $550,000 Cost of goods sold 61,600 Gross profit 157,49 Operating expenses Depreciation expense 151,000 other expenses 130.500 1o, 500 Income before taxes Incontres expense Net Income $ 7,500 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 flow from operating activities Adjustments to reconcile net income to operating cash flow 2 2016 Part 1 of 2 ANDERS COMPANY Comparative Balance Sheets 2017 Plant assets Equipent $ 250,000 Accum. Depr.-Equipment (140,000) Equipment, net $ 140,000 Buildings $ 480,000 Accum. Depr.-Huildings (160.000 Buildings, net $ 320,000 $ 370,000 (250,000) $ 120,000 $ 500,000 345.000 $ 155,000 142 Doints eBook QS 16-5 Indirect: Computing investing cash flows LO P2 During 2017, equipment with a book value of $60,000 and an original cost of $205,000 was sold at a loss of $7,000. 1. How much cash did Anders receive from the sale of equipment Hie Canli pecored from the sale of equipment 2. How much depreciation expense was recorded on equipment during 2017 3. What was the cost of new equipment purchased by Anders during 2017 Chapter 16 - Homework 3 ! Part 2 of 2 Required information Use the following information for the Quick Study below. The plant assets section of the comparative balance sheets of Anders Company is reported below. 1.42 points 2016 Shipped MIDERS COMPANY Comparative Balance Sheets 2017 Plant assets Equipment $ 280,000 Accum. Depr. -Equipment (140.000 Equipment, net $140,000 Buildings $ 480,000 Accun. Depr.-Buildings (160.000 Buildings, net $ 320,000 5 370.000 (250,000) $ 120,000 $ see, eee (345,000 $ 155,000 ebook QS 16-6 Indirect: Computing investing cash flows LO P2 During 2017 a building with a book value of $90,000 and an original cost of $400,000 was sold at a gain or $80,000 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