Computing cash flows for investing and financing activities Consider the following facts for Java Jolt: Beginning and ending Retained Earnings arc $45,000 and $70,000, respectively, Net income for the period is $60,000. Beginning and ending Plant Assets arc $124,500 and $134,500, respectively. Beginning and ending Accumulated Depreciation—Plant Assets are $21,500 and $26,500, respectively. Depreciation Expense for the period is $17,000, and acquisitions of new plant assets total $29,000. Plant assets were sold at a $5,000 gain. Requirements How much are cash dividends? What was the amount of the cash receipt from the sale of plant assets?

Question

Computing cash flows for investing and financing activities

Consider the following facts for Java Jolt:

  • Beginning and ending Retained Earnings arc $45,000 and $70,000, respectively, Net income for the period is $60,000.
  • Beginning and ending Plant Assets arc $124,500 and $134,500, respectively.
  • Beginning and ending Accumulated Depreciation—Plant Assets are $21,500 and $26,500, respectively.
  • Depreciation Expense for the period is $17,000, and acquisitions of new plant assets total $29,000. Plant assets were sold at a $5,000 gain.

Requirements

  1. How much are cash dividends?
  2. What was the amount of the cash receipt from the sale of plant assets?

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