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 2017.
(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 like Bird to be generating or using cash for its investing activities? Explain.

Transcribed Image Text:

2018 2017 Accumulated depreciation-buildings $675,000 600,00o Accumulated depreciation-equipment 288,000 192,000 Depreciation expense-buildings Depreciation expense-equipment Land Buildings Equipment Loss on disposal (equipment) 75,00075,000 28,000 96,000 250,000 200,000 1,250,000 1,250,000 0000480,000 4,000