Calculate certain information for direct method (Learning Objective 4)

20–25 min.

Good Life, Inc., a nationwide insurance chain, reported the following selected amounts in its financial statements for the year ended December 31, 2014 (adapted, in millions):

Net Sales.............................................................................................

Cost of Goods Sold .............................................................................

Depreciation Expense..........................................................................

Other Operating Expenses...................................................................

Income Tax Expense ...........................................................................

Net Income .........................................................................................

Income Statement Cash and Cash Equivalents .................................................................

Accounts Receivable ...........................................................................

Inventories ..........................................................................................

Property and Equipment, Net ..............................................................

Accounts Payable................................................................................

Accrued Liabilities...............................................................................

Long-Term Liabilities ..........................................................................

Common Stock ...................................................................................

Retained Earnings ...............................................................................

$ 7 612 1,439 2,863 1,277 854 196 480 2,114

$ 16 798 1,644 3,171 1,397 932 205 590 2,505 Balance Sheet

$22,173 15,842 237 4,012 541 1,541 2013

$27,391 19,412 276 4,853 742 2,108 2014 2014 2013 Requirement 1. Determine the following for Good Life, Inc., during 2014. (Enter all amounts in millions.)

a. Collections from customers

b. Payments for inventory

c. Payments of operating expenses

d. Acquisitions of property and equipment; no sales were made during 2014

e. Long-term borrowing, assuming Good Life, Inc., made no payments on longterm liabilities

f. Proceeds from issuance of common stock g. Payment of cash dividends AppendixLO1