Question
Income Statement for the year ended December 31, 2020 (millions of $) Revenue (sales) $773 Cost of goods sold 595 Selling, general, and administrative expenses*
Income Statement for the year ended December 31, 2020 (millions of $)
Revenue (sales) | $773 |
Cost of goods sold | 595 |
Selling, general, and administrative expenses* | 130 |
Loss on disposal of plant** | 6 |
Interest expense | 12 |
Income tax expense | 10 |
Net income | $ 20 |
*Includes depreciation expense of $30 million, insurance expense of $8 million, bad debt expense of $6 million, and salaries expense of $86 million.
** During 2020, the company purchased two pieces of equipment costing a total of $36 million. Summer Fun also incurred a loss of $6 million on the sale of a plant.
Balance Sheet at December 31 (millions of $)
2020 | 2019 | ||
Cash | $ 15 |
| $ 2 |
Accounts receivable, net | 93 | 79 | |
Inventory | 132 | 120 | |
Prepaid insurance | 6 | 8 | |
Property, plant, and equipment, gross | 195 | 182 | |
Accumulated depreciation | 55 | 35 | |
Total assets | $386 | $356 | |
Accounts payable (inventory) | $ 40 | $ 43 | |
Interest payable | 5 | 2 | |
Deferred revenue | 4 | 3 | |
Short-term bank loans | 20 | 35 | |
Long-term debt | 115 | 105 | |
Common stock and additional paid-in capital | 105 | 90 | |
Retained earnings | 97 | 78 | |
Total liabilities and equity | $386 | $356 |
Question 1: 2020 cash flow from financing activities is a net cash inflow of:
Question 2: 2020 cash flow from operating activites is a net cash inflow of:
Question 3: If the company used the direct method of reporting cash flow from operating activities, the amount of "Cash paid for interest" in 2020 would be:
Question 4: Based on the information above, the company's 2020 cash flow from investing activities should inlclude a cash inflow from the sale of the plant totaling:
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