Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 17

An analysis of the income statement and the balance sheet accounts of Hampton, Inc., at December 31, 2015, provides the following information:

Additional Information
1.xcept as noted in 4 below, payments and proceeds relating to investing transactions were made in cash.
2.he marketable securities are not cash equivalents.
3.ll notes receivable relate to cash loans made to borrowers, not to receivables from customers.
4.urchases of new equipment during the year ($196,000) were financed by paying $60,000 in cash and issuing a long-term note payable for $136,000.
5.ebits to the accumulated depreciation accounts are made whenever depreciable plant assets are retired.he book value of plant assets retired during the year was $45,000 ($120,000 $75,000).
Instructions
a.repare the investing activities section of a statement of cash flows.how supporting computations for the amounts of (1) proceeds from sales of marketable securities and (2) proceeds from sales of plant assets.lace brackets around numbers representing cash outflows.
b.repare the supporting schedule that should accompany the statement of cash flows in order to disclose the noncash aspects of the company's investing and financing activities.
c.ssume that Hampton's management expects approximately the same amount of cash to be used for investing activities next year.n general terms, explain how the company might generate cash for this purpose.