! Required information E12-13 (Algo) (Supplement B) Computing and Reporting Cash Flow Effects of Sale of...

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! Required information E12-13 (Algo) (Supplement B) Computing and Reporting Cash Flow Effects of Sale of Plant and Equipment [The following information applies to the questions displayed below.] During two recent years, Perez Construction, Incorporated, disposed of the following plant and equipment: Plant and equipment (at cost) of Cash received Gain (loss) on sale Year 1 $ 76,100 Year 2 $ 15,700 Accumulated depreciation on equipment disposed 42,585 4,873 20,064 (13,451) 14,363 3,536 E12-13 Part 1 Required: 1. Determine the cash flow from the sale of property for each year that would be reported in the investing activities section of the cash flow statement. Note: List cash outflows as negative amounts. PEREZ CONSTRUCTION, INCORPORATED Cash flows from investing activities Proceeds from sale of equipment Year 1 Year 2 E12-13 Part 2 2. Perez uses the Indirect method for the operating activities section of the cash flow statement. What amounts related to the sales would be added or subtracted in the computation of Net Cash Flows from Operating Activities for each year? Note: Amounts to be deducted should be indicated with a minus sign. PEREZ CONSTRUCTION, INCORPORATED Cash flows from operating activities Year 1 Year 2 ! Required information E12-13 (Algo) (Supplement B) Computing and Reporting Cash Flow Effects of Sale of Plant and Equipment [The following information applies to the questions displayed below.] During two recent years, Perez Construction, Incorporated, disposed of the following plant and equipment: Plant and equipment (at cost) of Cash received Gain (loss) on sale Year 1 $ 76,100 Year 2 $ 15,700 Accumulated depreciation on equipment disposed 42,585 4,873 20,064 (13,451) 14,363 3,536 E12-13 Part 1 Required: 1. Determine the cash flow from the sale of property for each year that would be reported in the investing activities section of the cash flow statement. Note: List cash outflows as negative amounts. PEREZ CONSTRUCTION, INCORPORATED Cash flows from investing activities Proceeds from sale of equipment Year 1 Year 2 E12-13 Part 2 2. Perez uses the Indirect method for the operating activities section of the cash flow statement. What amounts related to the sales would be added or subtracted in the computation of Net Cash Flows from Operating Activities for each year? Note: Amounts to be deducted should be indicated with a minus sign. PEREZ CONSTRUCTION, INCORPORATED Cash flows from operating activities Year 1 Year 2