The following selected account balances relate to the property, plant, and equipment accounts of Bird Corp.

Additional information:
1. Purchased land for $50,000, making a $20,000 down payment and financing the remainder with a mortgage payable.
2. Equipment was purchased for $80,000 cash. Equipment was also sold during the year.
Instructions
(a) Calculate any cash receipts or payments related to the property, plant, and equipment accounts in 2015.
(b) Indicate where each of the cash receipts or payments identified in part (a) would be classified on the statement of cash flows or accompanying notes.
(c) Would you expect a growing company to be generating or using cash for its investing activities? Explain.

Transcribed Image Text:

2015 2014 Accumulated depreciation-buildings Accumulated depreciation-equipment Depreciation expense-buildings Depreciation expense equipment Land Buildings Equipment Loss on disposal of equipment 675,000 288,000 75,000 128,000 250,000 1,250,000 500,000 4,000 $ 600,000 192,000 75,000 96,000 200,000 1,250,000 480,000 0