Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Midland Manufacturing Corporation Comparative Balance Sheets (in Millions of Dollars)* December 31, December 31, Year 1 Year 2 Rectangular Assets Current assets: Cash $ 4.3
Midland Manufacturing Corporation Comparative Balance Sheets (in Millions of Dollars)* December 31, December 31, Year 1 Year 2 Rectangular Assets Current assets: Cash $ 4.3 $ 0.7 Accounts receivable, net 7.1 7.5 Inventories 12.9 13.1 Total current assets $24.3 $21.3 Property and equipment $80.1 $114.6 Less: Accumulated depreciation 17.0 25.3 et property and equipment $63.1 $89.3 Total assets $87.4 $110.6 Liabilities and Stockholder's Equity Current liabilities: Accounts payable $ 8.2 $ 9.4 Other current liabilities 6.3 8.4 Total current liabilities $14.5 $17.8 Long-term debt 18.7 30.8 Deferred federal income taxes $1.2 $1.6 Stockholders' equity: Common stock $ 3.2 $ 3.2 Common stock $ 3.2 $ 3.2 27.7 27.7 22.1 29.5 Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $53.0 $60.4 $87.4 $110.6 Net income for the year ended December 31, Year 2, totaled $10.5 million; dividends paid during the same eriod totaled $3.1 million; $2.0 million of long-term debt was retired in Year 2; and fixed assets were sold uring Year 2 for $1.2 million. repare a statement of cash flows (using the indirect method) for the Midland Manufacturing Corporation for the year ending December Year 2, ased on the comparative balance sheets shown above. Use minus sign to indicate cash outflows. Enter your answers in millions. For example, n 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 III 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 $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started