Question

e cash inflow or outflow from operating activities. Calculate the cash Q$ 16-9 Calculatir Refer to the info calculating cash from investing activities L06 the information below for Douglas Tree How ate the cash paid for equipment purchased during 2020. late the cash proceeds for equipment sold during 2020. 2. Calculate the cash Calculate the ca Douglas Tree Housing Inc. Comparative Balance Sheet Information December 31 Cash.. 2020 2019 Accounts receivable (net)... $ 20 $ 5 50 20 Equipment 300 Accumulated depreciation. Long-term investments Accounts payable...... Accrued liabilities.... Common shares... 90 Retained earnings 223 'Equipment costing $150 was sold during 2020; equipment was purchased during 2020. Long-term investments sold at a profit during 2020. Profit for 2020 included a $30 loss on sale of equipment and a $10 profit on sale of long-term Investments: depreciation expense recorded during 2020 totalled $20. 1073

Answer 1

Solution Required a.: Computation of cash paid for equipment purchased during 2020 Equipment Cost, Beginning Balance Less: Cost of the equipment sold Expected Ending balance Equipment Cost, Ending Balance Actual Cash paid for equipment purchased ($328 - $150) $300 ($150) $150 $328 $178 Cash paid for equipment purchased during 2020 $178 Required b.: Computation of cash proceeds for equipment sold during 2020 Cost of the equipment sold Less: Accumulated depreciation on the equipment sold (WN-1) WDV of the equipment sold Less: Loss on sale of equipment Cash proceeds for equipment sold ($135 - $30) $150 ($15) $135 ($30) $105 Cash proceeds for equipment sold during 2020 $105 WN-1: Computation of the Accumulated depreciation on the equipment sold Accumulated Depreciation, Beginnning Balance Add: Depreciation expense for 2020 Expected Ending balance Accumulated Depreciation, Ending Balance Actual Accumulated depreciation on the equipment sold ($115 - $100) $95 $20 $115 $100 $15