Reporting cash flows for plant assets


Report cash flows for plant assets

Response to the following problem:

Assume Gruen Manufacturing Corporation completed the following transactions:

a. Sold a store building for $710,000. The building had cost Gruen Manufacturing $1,400,000, and at the time of the sale, its accumulated depreciation totaled $780,000.

b. Lost a store building in a fire. The building cost $430,000 and had accumulated depreciation of $260,000. The insurance proceeds received by Gruen Manufacturing totaled $108,000.

c. Renovated a store at a cost of $201,000.

d. Purchased store fixtures for $73,000. The fixtures are expected to remain in service for 10 years and then be sold for $14,000. Gruen Manufacturing uses the straight-line depreciation method.

For each transaction, show what Gruen Manufacturing would report for investing activities on its statement of cash flows. Show negative amounts in parentheses.

 

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Financial Accounting: Reporting cash flows for plant assets
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