Exercise 12-22 Long-Term Assets on the Statement of Cash Flows— Indirect Method The following…


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Exercise 12-22 Long-Term Assets on the Statement of Cash Flows— Indirect Method The following… 1 answer below » Exercise 12-22 Long-Term Assets on the Statement of Cash Flows— Indirect Method The following account balances are taken from the records of Martin Corp. for the past two years. (Credit balances are shown in parentheses.) LO3•6 December 31 2014                    2013 View complete question » Plant and equipment $ 750,000 $ 500,000 Accumulated depreciation (160,000) (200,000) Patents 92,000 80,000 Retained Exercise 12-22 Long-Term Assets on the Statement of Cash Flows— Indirect Method The following account balances are taken from the records of Martin Corp. for the past two years. (Credit balances are shown in parentheses.) LO3•6 December 31 2014                    2013 Plant and equipment $ 750,000 $ 500,000 Accumulated depreciation (160,000) (200,000) Patents 92,000 80,000 Retained earnings (825,000) (675,000) Other information available for 2014 is as follows: a.      Net income for the year was $200,000. b.      Depreciation expense on plant and equipment was $50,000. c.       Plant and equipment with an original cost of $150,000 were sold for $64,000. (You will need to determine the book value of the assets sold.) d.      Amortization expense on patents was $8,000. e.       Both new plant and equipment and patents were purchased for cash during the year. Required Indicate, with amounts, how all items related to these long-term assets would be reported in the 2014 statement of cash flows, including any adjustments in the Operating Activities section of the statement. Assume that Martin uses the indirect method. View less » Jan 29 2016 12:14 PM

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