Computation of Cash Flows
an Analysis of Changes in Selected

Computation of cash flows
An analysis of changes in selected statement of financial position accounts of Tam Corporation shows the following for the current year:
$\begin{array}{|l|l|}\hline \text { Equity Securities account } & \\\hline \text { Debit entries } & \$ 1,600,000 \\\hline \text { Credit entries } & \$ 1,000,000 \\\hline \text { Property, Plant, and Equipment accounts: } & \\\hline \text { Debit entries to asset accounts } & \$ 3,600,000 \\\hline \text { Credit entries to asset accounts } & \$ 2,800,000 \\\hline \text { Debit entries to accumulated depreciation accounts } & \$ 1,300,000\\\text { (resulting from sale of PPE assets) }\\\hline \begin{array}{c}\text { Credit entries to accumulated depreciation accounts } \\\text { (representing depreciation for the current year) }\end{array} & \$ 500,000 \\\hline\end{array}$ The income statement for the current year included the following items relating to the transactions summarized above:
$\begin{array}{|l|l|}\hline \text { Loss on sale of equity securities } & \$ 350,000 \\\hline \text { Gain on sale of property, plant, and equipment } & \$ 650,000\\\hline\end{array}$ All payments and proceeds relating to these transactions were in cash. Using this information, compute the following cash flows for the current year:
$$\begin{array} { | l | l | } \hline \text { (a) Purchases of equity securities } & \$ \\\hline \text { (b) Proceeds from sale of equity securities } & \$ \\\hline \text { (c) Purchases of property, plant, and equipment } & \$ \\\hline \text { (d) Proceeds from sale of property, plart, and equipment } & \$ \\\hline\end{array}$$