Lewis, Inc uses the indirect method to prepare its statement of cash flows
Refer to the following portion of the comparative balance sheet:
Lewis, Inc
Comparative Balance Sheet
December 31, 2017 and 2016
2017 2016 Increase (Decrease)
Cash $42,000 $36,000 $6,000
Accounts Receivable 62,000 70,000 (8,000 )
Merchandise Inventory 106,000 50,000 56,000
PP&E, net 240,000 180,000 60,000
Total Assets $450,000 $336,000 $114,000
Additional information provided by the company includes the following:
Equipment costing $104,000 was purchased for cash.
Equipment with a net book value of $20,000 was sold for $28,000.
Depreciation Expense of $24,000 was recorded during the year.
Use the T-account format and evaluate the transactions affecting Property, Plant, and Equipment, net.
What will be an ideal response
Property, Plant & Equipment, net
Begining 180,000
Acquisitions 104,000 20,00 Disposals
24,000 Depreciation
Ending 240,000
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