Required information P8-7 (Algo) Inferring Activities Affecting Fixed Assets from Notes to the Financial Statements and Analyzing the Impact of Depreciation on Cash Flows LO8-5, 8-7 [The following information applies to the questions displayed below.] The following information is summarized from Note 20 of a recent annual report of Andromidas Airlines. Numbers are in millions of Singapore dollars: Cost Aircraft Other fixed assets (summarized) Accumulated depreciation Aircraft Other fixed assets (summarized) Beginning of Year Additions Disposals End of Year 18,250.1 6,689.1 24,939.2 2,317.2 1,920.3 18,647.0 2,230.8 2,419.0 4,548.0 4,339.3 25,147.9 6,500.9 Beginning Impairment End of Year Depreciation Loss Disposals of Year 5,764.2 2,740.9 8,505.1 1,982.3 1,587.1 45.4 395.2 1.7 47.1 873.9 439.4 6,522.8 2,698.4 1,313.3 9,221.2 Andromidas Airlines also reported the following cash flow details: Cash Flow from Operating Activities (in $ millions) Profit before taxation Current Year 1,206.6 Prior Year 2,566.2 Adjustments for Depreciation Impairment loss Loss (gain) on disposal of fixed assets 1,982.3 47.1 (50.7) 1,501.8 6.1 (29.1) Other adjustments (summarized) (1,528.2) 424.9 Cash generated from operations 1,657.1 4,469.9 P8-7 Part 1 Required: 1. Reconstruct the information in Note 20 using T-accounts for Fixed Assets and Accumulated Depreciation: (Enter your answers in millions rounded to 1 decimal place (i.e. 5,500,000 should be entered as 5.5).) Property, Plant and Equipment Beg. balance Additions End. balance 0.0 Disposals Disposals Accumulated Depreciation Beg. balance Depreciation expense Impairment loss 0.0 End. balance P8-7 Part 2 2. Compute the amount of cash the company received for disposals for the current year. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Cash proceeds from disposals million P8-7 Part 3 3. Compute the percentage of depreciation expense to cash flows from operations for the current year. (Round your percentage answer to 1 decimal place (i.e. 0.123 should be entered as 12.3).) Percentage of depreciation expense %