Cathay Pacific Airways reported the following information in the notes to the financial statements of its 2012 annual report (in millions of Hong Kong dollars):

Cathay Pacific also reported the following cash flow details:

Required:
1. Reconstruct the information in Note 12 into T- accounts for fixed assets and accumulated depreciation:

2. Compute the amount of cash the company received for disposals during 2012. Show computations.
3. Compute the percentage of depreciation expense to cash flows from operations for 2012. How do you interpret this percentage?

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CATHAY PACIFIC AIRWAYS Notes to the Accounts 10. Fixed Assets Acquisition Cost Accumulated Depreciation $130,668 20,177 $57,170 Balance, January 1,2012 Additional acquisitions Depreciation expense Disposals Other changes (summarized) Balance, December 31, 2012 6,617 (4,195) (1499) $58,093 (6,275) 199 $142,371 Cash Flow from Operating Activities (in millions of HK dollars) 2012 $1,788 2011 Eamings from ope rations Adjustments for: $ 5,500 Depreciation Loss on disposal of fixed assets, net Other adjustments (summarized) 6,617 6,127 159 3,607 $15,393 101 733 $9,239 Cash generated from operations Fixed Assets m Accumulated Depreciation Beg. balance Beg. balance Acquisitions End balance Disposals Disposals Depreciation expense End. balance