Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi, could you please help me out with 4 and 5. The following information has been reported by Laporte Inc. on its statements of nancial

Hi, could you please help me out with 4 and 5.

image text in transcribedimage text in transcribed
The following information has been reported by Laporte Inc. on its statements of nancial 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: Statements of Financial Position 2017 201 6 Cash $ 120 $ 78 Accounts receivable 64 44 Merchandise inventory 47 52 Long-term investments - 38 Property, plant, and equipment 213 174 Accumulated depreciation (68) (76) Total assets $ 376 $ 310 Accounts payable $ 4-4 58 Income taxes payable 4 5 Long-term borrowings 97 47 Contributed capital 162 150 Retained earnings 69 50 Total liabilities and shareholders' equity $ 376 $310 Statement of Earnings Sales $ 190 Cost of sales (114) Gross prot 76 Depreciation expense (10) Other operating expenses (45) Earnings from operations 21 Gain on sale of investments 7 Loss on sale of equipment (2) Earnings before income tax 26 Income tax expense 5 Net earnings $ 21 Additional information is as follows: 3. Old equipment was sold for cash during 2017. It had an original cost of $36 and an accumulated depreciation of $18. b. A new building was acquired during the year in exchange for a long-term note for $50, payable in ve years. In addition, new equipment was purchased for cash. 4. Based on your answers to (1.) and (2.) above, determine the net cash flow from financing activities. (Hint: This can be done without preparing the financing activities section of the statement.) (Enter your answer in millions.) Cash flow from financing activities 5. The president of Laporte Inc., Tanya Turcotte, was provided with a copy of the operating activities section of the statement of cash flows that you prepared in (1.), and made the following comment: "This report is supposed to show operating cash inflows and outflows during the year, but I don't see how much cash Laporte Inc. received from customers and how much it paid to trade suppliers and for income taxes. Please ask whoever prepared this statement to provide me with these numbers." Based on Tanya's comment, compute the following amounts for 2017: (Enter your answers in millions.) a. Cash collected from customers b. Cash paid to trade suppliers C. Cash paid for income taxes

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Advanced Accounting

Authors: Joe Ben Hoyle

8th Edition

1260575926, 978-1260575927

More Books

Students also viewed these Accounting questions

Question

Why would a person fear success?

Answered: 1 week ago

Question

How do you add two harmonic motions having different frequencies?

Answered: 1 week ago

Question

Annoyance about a statement that has been made by somebody

Answered: 1 week ago

Question

Self-confidence

Answered: 1 week ago