The following information is summarized from Note 20 of a recent annual report of Singapore Airlines. Numbers are in millions of Singapore dollars:

Singapore Airlines also reported the following cash flow details:

Required:

1. Reconstruct the information in Note 20 using T-accounts for Property, Plant, and Equipment and Accumulated Depreciation:

2. Compute the amount of cash (in millions of dollars) that the company received for disposals for the current year. Show computations.

3. Compute the percentage of depreciation expense to cash flows from operations for the current year. Round your percentage to one decimal place. What do you interpret from the result?

Transcribed Image Text:

Beginning End of Year of Year Additions Disposals Cost 20,072.5 5,811.2 Aircraft Other fixed assets (summary) 2,277.0 21,852.2 7,452.0 497.3 1,752.9 112.1 25,883.7 4,029.9 609.4 29,304.2 Beginning Impairment End Depreciation Disposals of Year Loss of Year Accumulated depreciation Aircraft 9,966.3 1,773.9 1,408.6 143.5 21.2 373.0 11,023.1 1,847.8 Other fixed assets (summary) 3.9 73.5 25.1 446.5 11,740.2 1,552.1 12,870.9 Cash Flow from Operating Activities (in $ millions) Current Prior Year Year Profit before taxation 518.6 972.4 Adjustments for Depreciation 1,552.1 1,543.0 Impairment loss 25.1 10.6 Loss (gain) on disposal of fixed assets 31.7 (52.7) Other adjustments (summarized) 405.4 532.2 Cash generated from operations 2,532.9 3,005.5