The following selected account balances relate to the property, plant, and equipment accounts of Bird Corp. Additional

Question:

The following selected account balances relate to the property, plant, and equipment accounts of Bird Corp.

The following selected account balances relate to the property, plant,

Additional information:
1. Purchased land for $50,000, making a $20,000 down payment and financing the remainder with a mortgage payable.
2. Equipment was purchased for $80,000 cash. Equipment was also sold during the year.
Instructions
(a) Calculate any cash receipts or payments related to the property, plant, and equipment accounts in 2017.
(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 like Bird to be generating or using cash for its investing activities? Explain.

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Related Book For  book-img-for-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-1119368458

7th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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