The following account balances are taken from the records of Roadhouse Corporation for the past two years:

Question:

The following account balances are taken from the records of Roadhouse Corporation for the past two years:


The following account balances are taken from the records of


Other information available for 2009 is as follows:
a. Net income for the year was $200,000.
b. Depreciation expense on plant and equipment was $50,000.
c. Plant and equipment with an original cost of $150,000 was sold for $64,000 (you will need to determine the book value of the assets sold).
d. Amortization expense on patents was $8,000.
e. Both new plant and equipment and patents were purchased for cash during the year.

Required
Indicate, with amounts, how all items related to these long-term assets would be reported in the 2009 statement of cash flows, including any adjustments in the Operating Activities section of the statement. Assume that Roadhouse Corp. uses the indirectmethod.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Managerial Accounting A Focus on Ethical Decision Making

ISBN: 978-0324663853

5th edition

Authors: Steve Jackson, Roby Sawyers, Greg Jenkins

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