Question

1 Balance Sheet: Dec. 31, 2018 Dec. 31, 2017

Property, plant, and equipment $ 800,000 $ 559,000

Accumulated depreciation 142,000 86,000

Income Statement: 2018

Depreciation expense $ 90,000

Loss on sale of property, plant, and equipment 19,000

During the year, PPE with a book value of $48,000 were sold.

In the statement of cash flows, the investing activities section should show a cash disbursement for "purchases of property, plant, and equipment" for $ ______

2 Dec. 31, 2018 Dec. 31, 2017

Intangible assets, net $ 296,000 $ 225,000

Income Statement: 2018

Amortization expense $ 10,000

Loss on sale of intangible assets 9,000

During the year, the company sold intangible assets for $36,000 cash.

In the statement of cash flows, the investing activities section should show a cash disbursement for "purchases of intangible assets" for $ ___

Answer 1

Investing actiivties is where there is cash inflow or outflow due to investment made by company which are assets of business.
Calculation of cash disbursement for purchases of property, plant and equipment
Beginning PPE balance	$559,000
Less: PPE sold	$48,000
	$511,000
Ending PPE balance	$800,000
Purchase of PPE	$289,000
Thus, cash disbursement for purchase of PPE is $289,000.
Calculation of cash disbursement for purchases of intangible assets
Beginning intangible balance	$225,000
Less: Intangible sold	$48,000
Less: Amortization expense	$10,000
	$167,000
Ending intangible balance	$296,000
Purchase of intangible asset	$129,000
Thus, cash disbursement for purchase of intangible asset is $129,000.