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Statement of cash flows- classification

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The following selected account balances relate to the plant asset accounts at year end.

2008 2007
accumulated depreciation-buildings 337,500 300,000
accumulated depreciation- equipment 144,000 96,000
buildings 750,000 750,000
depreciation expense 101,500 85,000
equipment 300,000 240,000
land 100,000 70,000
loss on sale of equipment 1,000 -0-

ADDITIONAL INFORMATION
1. purchased 80,000 of equipment and 30,000 of land for cash in 2008
2. sold equipment in 2008
INSTRUCTIONS
(a) determine the amounts of any cash inflows or outflows related to the plant asset accounts in 2008.
(b) indicate where each of the cash inflows or outflows identified in (a) would be classified on the statement of cash flows.

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Solution Summary

The solution determine the amounts of any cash inflows or outflows related to the plant asset.

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A

Purchased Land for cash = $30,000 (outflow)
Purchased Equipment for cash = ...

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