Answer:
CATEGORY AMOUNT
a) Payment for purchase PPE Investing $56,000
b) Proceeds from sale of Equipment investing $30,900
c) Cash Dividend paid Operating $0
d) Redemption of Bonds Payable Financing $17,000
Explanation:
Payment for purchase of PPE (76,000-20,000) = $56,000
Cost ( end 2016) 246,200
Accumulated depreciation (167,300)
Carrying Amount 78,900
add Additions 76,000
Minus Depreciation (38,200)
Disposal at C.V (44,800 - 28,500) (16,300)
Cost (end 2017) 277,400
Accumulated Depreciation (177,000)
Carrying Value 100,400
to fill up the missing parts of the note we use bottom up approach
for an example to get additions we say cost at the end plus disposal (cost) - opening
the $20,000 is not cash outflow or cash inflow hence payment = 56000
Proceeds from sale of equipment
gain = selling price - Carrying Value
selling price = 14600+16300 = $30,900
Cash dividend has not been paid hence the increase in dividends payable
Redemption of bond = 45600 +20000 - 48600 = $17,000
