Gibraltar Industries is a Buffalo, New York–based manufacturer and distributor of building products for residential, industrial, infrastructure, renewable energy, and conservation markets. In a recent year, it reported the following activities:

Required:

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

2. Compute the capital acquisitions ratio. What does the ratio tell you about Gibraltar’s ability to finance purchases of property, plant, and equipment with cash provided by operating activities?

3. What main purpose do you think Gibraltar’s management had in mind for the cash generated by issuing long-term debt?

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Acquisitions (investments in other companies) Increase in inventories Depreciation and amortization Long-term debt reduction Net cash provided by operating activities Net income Net proceeds from issuance of common stock Net proceeds from sale of property and equipment Proceeds from long-term debt Proceeds from sale of other equity investments Purchases of property, plant, and equipment $(313,686) (5,719) 20,915 (6,656) 89,104 64,566 1,119 77 85,000 2,000 (13,068)