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The following selected account balances relate to the plant asset accounts of Karas Inc. at year-end.
Additional information:
1. Karas purchased $85,000 of equipment and $30,000 of land for cash in 2012.
2. Karas also sold equipment in 2012.
3. Depreciation expense in 2012 was $37,500 on building and $62,000 on equipment.
Instructions
(a) Determine the amounts of any cash inflows or outflows related to the plant asset accounts in 2012.
(b) Indicate where each of the cash inflows or outflows identified in (a) would be classified on the statement of cash flows.
Write a 500-word article analysis in which you identify situations that might lead to unethical practices and behavior in accounting.
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