Account entries are right

4 The following information has been reported by Laporte Inc. on its statements of financial position at December 31, 2016 and 2017, and on its statement of earnings for the year ended December 31, 2017. Amounts are in millions of dollars: 10 points Skipped Statements of Financial Position 2017 Cash $ 94 Accounts receivable 36 Merchandise inventory 30 Long-term investments Property, plant, and equipment 202 Accumulated depreciation (80) 2016 $ 70 26 34 20 160 (98) eBook Total assets $ 282 $212 References Accounts payable Income taxes payable Long-term borrowings Contributed capital Retained earnings $ 26 5 82 119 50 42 6 22 102 40 Total liabilities and shareholders' equity $ 282 $212 Statement of Earnings Sales Cost of sales $ 146 (86) Gross profit Depreciation expense Other operating expenses 60 (12) (35.0) Earnings from operations Gain on sale of investments Loss on sale of equipment 13.0 8 (4) Earnings before income tax Income tax expense 17.0 6.8 NI----- 4 Earnings before income tax Income tax expense 17.0 6.8 Net earnings $ 10.2 10 points Skipped Additional information is as follows: a. Old equipment was sold for cash during 2017. It had an original cost of $42 and an accumulated depreciation of $30. b. A new building was acquired during the year in exchange for a long-term note for $60, payable in five years. In addition, new equipment was purchased for cash. eBook References Required: 1. Prepare a statement of cash flows for Laporte Inc. for the year ended December 31, 2017 by using the direct method. (Negative answers should be indicated by a minus sign. Enter your answers in millions.) LAPORTE INC. Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from operating activities: Collections from customers Cash payments To suppliers For other operating expenses For income taxes $ 0.0 Net cash used for operating activities Cash flows from investing activities: Sale of equipment Purchase of equipment Sale of long-term investment Net cash flow from investing activities 0.0 4 10 points LAPORTE INC. Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from operating activities: Collections from customers Cash payments: To suppliers For other operating expenses For income taxes Skipped eBook $ 0.0 References Net cash used for operating activities Cash flows from investing activities: Sale of equipment Purchase of equipment Sale of long-term investment 0.0 Net cash flow from investing activities Cash flows from financing activities Dividends paid Issuance of shares 0.0 0.0 Net cash flow from financing activities ............................ Net increase in cash Cash balance, January 1, 2017 Cash balance, December 31, 2017 $ 0.0 2. Not available in Connect