Question

I need some explanation please, especially on the "Investing part" !!

3. Randy Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Balance Beginning Balance $ $ 31 61 29 73 59 61 684 349 $ 486 550 319 $ 394 Assets: Cash and cash equivalents Accounts receivable Inventory Property, plant, and equipment Less accumulated depreciation Total assets Liabilities and stockholders' equity: Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity $ 53 $ 54 52 203 61 48 190 60 $ 486 $ 394 $807 4921 Income Statement Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income Gain on sale of equipment Income before taxes Income taxes Net income 315 182 133 16 149 45 $104

Answer 1

voor 146 Statement of Cash Flows For the Period Ended December 31 Cash flows from operating activities Net Income Gain on sale of equipment Depreciation expense Decrease in accounts receivable Decrease in inventory Decrease in accounts payable Decrease in accrued liabilities Increase in income taxes payable Net cash flow from operating activities Cash flows from investing activities Proceed from sale of equipment Purchase of plant assets Net cash flow from investing activities Cash flows from financing activities Cash dividend paid Issuance of bonds Issuance of common stock Net Cash flow provided by financing activities Net increase (decrease) in cash Beginning cash and cash equivalent Ending cash and cash equivalent u $ -130

Depreciation expense = Ending accumulated depreciation + Accumulated depreciation on equipment sold - Beginning accumulated depreciation
Depreciation expense = $349 + $12 - $319
Depreciation expense = $42

Purchase of plant assets = Ending property, plant and equipment + Cost of equipment sold - Beginning property, plant and equipment
Purchase of plant assets = $684 + $14 - $550
Purchase of plant assets = $148