ties PROBLEM 19A-3 1 An analysis of the income statement and the balance sheet accounts of Franklin Reporting In Optical at December 31 provides the following information: vesting Activi- Income statement Items: Galn on sale of marketable securities $ 42,000 Loss on sales of plant assets .... 33,000 Analysis of balance sheet accounts: Marketable Securities account: Debit antries ... $ 81,000 Credit antries ...... 90,000 Notes Recalvable account: Debit antries. 210,000 Credit entries 162,000 Plant and equipment accounts: Debit entries to plant asset accounts 186,000 Credit entries to plant asset accounts ...... 120,000 Debit entries to accumulated depreciation accounts 75,000 ADDITIONAL 1 Except as noted in 4, below, payments and proceeds relating to investing trans- INFORMATION actions were made in cash. 2. The marketable securities are not cash equivalents. 3 All notes receivable relate to cash loans made to borrowers, not to receivables from customers. 4. Purchases of new equipment during the year ($186,000) were financed by pay- ing $60,000 in cash and issuing a long-term note payable for $126,000. 5 Debits to the accumulated depreciation account are made whenever deprecia- ble plant assets are retired. Thus, the book value of plant assets retired during the year was $45,000 ($120,000 - $75,000). INSTRUCTIONS a Prepare the Investing activities section of a statement of cash flows, Show supporting computations for the amounts of (1) proceeds from sales of market- able securities and (2) proceeds from sales of plant assets. Place brackets around numbers representing cash outflows. b Prepare the supporting schedule that should accompany the statement of cash flows in order to disclose the "noncash" aspects of the company's investing and financing activities