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Computation of Cash Flows
an Analysis of Changes in Selected

Question 112

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Computation of cash flows
An analysis of changes in selected balance sheet accounts of Gable Corporation shows the following for the current year:
 Marketable Securities account:  Debit entries $250,000 Credit entries $400,000 Plant and equipment accounts:  Debit entries to asset accounts $700,000 Credit entries to asset accounts $900,000 Debit entries to accumulated depreciation accounts  (resulting from the sale of plant assets $300,000 Credit entries to accumulated depreciation accounts  (representing depreciation for the current year) $125,000\begin{array}{l}\text { Marketable Securities account: }\\\begin{array} { | l | l | } \hline \text { Debit entries } & \$ 250,000 \\\hline \text { Credit entries } & \$ 400,000 \\\hline \text { Plant and equipment accounts: } & \\\hline \text { Debit entries to asset accounts } & \$ 700,000 \\\hline \text { Credit entries to asset accounts } & \$ 900,000 \\\hline \text { Debit entries to accumulated depreciation accounts } & \\\hline \text { (resulting from the sale of plant assets } & \$ 300,000 \\\hline \text { Credit entries to accumulated depreciation accounts } & \\\hline \text { (representing depreciation for the current year) } & \$ 125,000 \\\hline\end{array}\end{array}
The income statement for the current year included the following items relating to the transactions summarized above:
 Gain on sales of marketable securities $85,000 Loss on sales of plant assets 150,000\begin{array} { | l | r | } \hline \text { Gain on sales of marketable securities } & \$ 85,000 \\\hline \text { Loss on sales of plant assets } & 150,000 \\\hline\end{array}
All payments and proceeds relating to these transactions were in cash. Using this information, compute the following cash flows for the current year: Computation of cash flows An analysis of changes in selected balance sheet accounts of Gable Corporation shows the following for the current year: \begin{array}{l} \text { Marketable Securities account: }\\ \begin{array} { | l | l | } \hline \text { Debit entries } & \$ 250,000 \\ \hline \text { Credit entries } & \$ 400,000 \\ \hline \text { Plant and equipment accounts: } & \\ \hline \text { Debit entries to asset accounts } & \$ 700,000 \\ \hline \text { Credit entries to asset accounts } & \$ 900,000 \\ \hline \text { Debit entries to accumulated depreciation accounts } & \\ \hline \text { (resulting from the sale of plant assets } & \$ 300,000 \\ \hline \text { Credit entries to accumulated depreciation accounts } & \\ \hline \text { (representing depreciation for the current year) } & \$ 125,000 \\ \hline \end{array} \end{array} The income statement for the current year included the following items relating to the transactions summarized above: \begin{array} { | l | r | } \hline \text { Gain on sales of marketable securities } & \$ 85,000 \\ \hline \text { Loss on sales of plant assets } & 150,000 \\ \hline \end{array} All payments and proceeds relating to these transactions were in cash. Using this information, compute the following cash flows for the current year:

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(a) $250,000 (debit entries to...

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