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PR 4-10 The chief accountant for Grandview Corporation provides you with the company's 2021 statement of cash flows and income statement. The accountant has asked
PR 4-10 The chief accountant for Grandview Corporation provides you with the company's 2021 statement of cash flows and income statement. The accountant has asked for your help with some missing figures in the compar Main content fative balance sheets. These financial statements are shown next ($ in millions). GRANDVIEW CORPORATION Statement of Cash Flows GRANDVIEW CORPORATION For the Year Ended December 31, 2021 Income Statement For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Sales revenue $ 80 Collections from customers $ 71 Cost of goods sold 32 Gross profit 48 Payment to suppliers (30) Payment of general & administrative expense (18) Payment of income taxes (9) Operating expenses: General and administrative expense $ 18 10 Depreciation expense $ 14 Net cash flows from operating activities Main content Cash Flows from Investing Activities: Total operating expenses 28 Operating income 20 Sale of investments 65 Other income: Gain on sale of investments 15 Cash Flows from Financing Activities: Income before income taxes 35 Issuance of common stock 10 Income tax expense 7 Net income $ 28 Payment of dividends (3) Net cash flows from financing activities 7 Net increase in cash $ 86 GRANDVIEW CORPORATION Balance Sheets At December 31 2021 2020 Assets: Cash $ 145 $ ? Accounts receivable ? 84 Investments 50 Inventory 60 ? Property, plant & equipment 150 150 Less: Accumulated depreciation (65) ? Total assets ? Liabilities and Shareholders Equity: Accounts payable $ 40 $ 30 Accrued liabilities (for selling & admin. expense) 9 9 Income taxes payable 22 ? Common stock 240 230 Retained earnings ? 47 __ ? Total liabilities and shareholders equity __ ? Required: 1. Calculate the missing amounts. 2. Prepare the operating activities section of Grandview's 2021 statement of cash flows using the indirect method. Use a format similar to the one in the Concept Review Exercise at the end of Part B of this chapter
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