Consider the following comparative balance sheets for the Midland Manufacturing Corporation. Midland Manufacturing Corporation Comparative Balance Sheets (in Millions of Dollars)* December 31, December 31, Year 1 Year 2 Assets Current assets: Cash $ 4.0 $ 0.5 Accounts receivable, net 7.1 7.5 Inventories 14.1 14.4 Total current assets $25.2 $22.4 Property and equipment $80.2 $114.8 Less: Accumulated depreciation 16.3 25.5 Net property and equipment $63.9 $89.3 Total assets $89.1 $111.7 Liabilities and Stockholder's Equity Current liabilities: Accounts payable $ 7.9 $ 9.3 Other current liabilities 6.1 9.0 Total current liabilities $14.0 $18.3 Long-term debt 19.0 31.8 Deferred federal income taxes $1.3 $1.6 Stockholders equity: Common stock $ 3.1 $ 3.1 Additional paid-in capital 27.7 27.7 Retained earnings 24.0 29.2 Total stockholders equity $54.8 $60.0 Total liabilities and stockholders equity $89.1 $111.7

*Net income for the year ended December 31, Year 2, totaled $9.1 million; dividends paid during the same period totaled $3.9 million; $1.7 million of long-term debt was retired in Year 2; and fixed assets were sold during Year 2 for $1.2 million.

Prepare a statement of cash flows (using the indirect method) for the Midland Manufacturing Corporation for the year ending December Year 2, based on the comparative balance sheets shown above. Use minus sign to indicate cash outflows. Enter your answers in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answers to one decimal place.

Midland Manufacturing Corporation Statement of Cash Flows For the Year Ended December 31, Year 2 ($ millions)

Cash Flows from Operating Activities:

Net Income $

Adjustments to reconcile net income to net cash provided from operating activities

Depreciation

(Increase) decrease in current assets or liabilities

Accounts receivable

Inventories

Accounts payable

Other current liabilities

Increase (decrease) in deferred taxes

Total adjustments

Net cash provided from (used by) operating activities

Cash Flows from Investing Activities

Proceeds from sale of facilities or equipment

Capital expenditures

Net cash used by investing activities

Cash Flows from Financing Activities

Proceeds from issuance of long-term debt

Repayments of long-term debt

Dividends paid

Net cash provided from (used by) financing activities

Net Increase (Decrease) in Cash

Cash - Beginning of Year

Cash - End of Year $