Empire Company Limited owns or franchises more than 1,300 corporate and franchised stores in all 10 provinces under retail banners that include Sobeys, Foodland, Fresh Co, Safeway, IGA, IGA Extra, and Price Chopper. In a recent year, the Empire Company Limited reported the following activities (in millions of Canadian dollars):

Net earnings .................... $ 265.7

Purchases of property and equipment ........... 431.0

Increase in trade payables and accrued liabilities ...... 138.7

Issue of shares ................... 129.1

Depreciation and amortization ............... 324.8

Proceeds from sale of discontinued operations ........ 78.0

Repayment of long- term borrowings .......... 307.7

Increase in trade receivables .............. 27.6

Payment of dividends ................ 46.1

Required:

1. Based on this information, prepare the investing and financing activities sections of the statement of cash flows.

2. What do you think was management’s plan for the use of the cash generated by the sale of discontinued operations?