The following selected account balances relate to the property, plant, and equipment accounts of Katewill Inc.:

Additional information:
1. Purchased $40,000 of land for cash.
2. Purchased $75,000 of equipment for a $10,000 down payment, financing the remainder with a bank loan. Equipment was also sold during the year.
Instructions
(a) Calculate any cash receipts or payments related to the property, plant, and equipment accounts in 2015.
(b) Indicate where each of the cash receipts or payments identified in part (a) would be classified on the statement of cash flows or accompanying notes.
(c) Would you expect a growing company to be generating or using cash for its investing activities? Explain.

Transcribed Image Text:

2014 Accumulated depreciation-buildings Accumulated depreciation-equipment Depreciation expense-buildings Depreciation expense-equipment Land Buildings Equipment Gain on disposal of equipment 2015 $337,500 144,000 37,500 60,000 100,000 750,000 300,000 S300,000 96,000 37,500 48,000 60,000 750,000 240,000 5,000