Required information [The following information applies to the questions displayed below.) The plant assets section of the comparative balance sheets of Anders Company is reported below. 2018 ANDERS COMPANY Comparative Balance Sheets 2019 Plant assets Equipment $ 210,000 Accumulated depreciation- (112,000) Equipment Equipment, net $ 98,000 Buildings $ 410,000 Accumulated depreciation (118,000) Buildings Buildings, net $ 292,000 $ 300,000 (222,000) $ 78,000 $ 430,000 (303,000) $ 127,000 During 2019, equipment with a book value of $46,000 and an original cost of $240,000 was sold at a loss of $4,200. 1. How much cash did Anders receive from the sale of equipment? 2. How much depreciation expense was recorded on equipment during 2019? 3. What was the cost of new equipment purchased by Anders during 2019? 1. 2. Cash received from the sale of equipment Depreciation expense Purchase of equipment 3. Indicate which of the following has an effect on financing cash flows. a. Notes payable with a carrying value of $19,000 are retired for $22,000 cash, resulting in a $3,000 loss. b. Paid cash dividends of $15,000 to common stockholders. c. Acquired $24,000 worth of machinery in exchange for common stock. Items Amount Effect on financing cash flows a. Notes payable b. Dividends c. Machinery MOSS COMPANY Selected Balance Sheet Information December 31, 2019 and 2018 2019 2018 Current assets Cash $85,150 $27,300 Accounts 25,500 33,000 receivable Inventory 60,500 54,200 Current liabilities Accounts payable 31,400 26,200 Income taxes 2,100 2,300 payable MOSS COMPANY Income Statement For Year Ended December 31, 2019 Sales $ 520,000 Cost of goods sold 333,600 Gross profit 186,400 Operating expenses Depreciation $ 37,000 expense Other expenses 122,500 159,500 Income before 26,900 taxes Income taxes 8,600 expense Net income $ 18,300 Use the information above to calculate cash flows from operating activities using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) $ Twix 4,300 32,300 Dots $108,000 8,600 21,500 Skor $78,000 26,000 (4,300) 43,100 Net income Depreciation expense Accounts receivable increase (decrease) Inventory increase (decrease) Accounts payable increase (decrease) Accrued liabilities increase (decrease) 10,800 (21,600) 25,900 (10,800) (23,800) 13,000 15,100 (8,600) (47,500) For each separate company, compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) Cash Flows from Operating Activities (Indirect) Twix Dots Skor Adjustments to reconcile net income to net cash provided by operations: $ 0 $ 0 $ 0