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For the year ended December 30th, the T accounts for plant assets and accumulated depreciation of...

For the year ended December 30th, the T accounts for plant assets and accumulated depreciation of KANEKO TRADING, CO. are as follows: PLANT ASSETS+ ACCUMULATED DEPRECIATION Beginning Balance 260,000 Disposals 92,000 Disposals 58,800 Beginning Balance. 138,000 Purchases 134,400 Depreciation 40,800 Ending Balance 302,400 Ending Balance 120,000 In addition, KANEKO TRADING, CO’ s Income statement shows a gain on sales of plant assets by 17,600 Task required: Compute the amounts to be shown as cash flows from investing activities (assuming purchases and sales were for cash) and show how they are to appear on the statement of cash flows

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Answer #1
working T accounts
Plant
beg bal 260000 Diposals 92000
Purchases 134400
ending bal 302400
Accumulated Depreciation
Plant (138000+40800-120000) 58800 Beg bal 138000
Dep 40800
Ending bal 120000
answer
Statement of cash flow
Cash flow from Investing Activities
Purchase of plant ($134,400)
Sale of plant $50,800
Book value (92000-58800)+ gain 17600
Net cash used in investing activities ($83,600)
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