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

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.

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.

  • CreatedMarch 11, 2015
  • Files Included
Post your question