Problem 4-10 (Algo) Integration of financial statements; Chapters 3 and 4 [LO4-8]

The chief accountant for Grandview Corporation provides you with the companys 2021 statement of cash flows and income statement. The accountant has asked for your help with some missing figures in the companys comparative balance sheets. These financial statements are shown next ($ in millions).

GRANDVIEW CORPORATION Statement of Cash Flows For the Year Ended December 31, 2021
Cash Flows from Operating Activities:
Collections from customers	$	121
Payment to suppliers		(40	)
Payment of general & administrative expenses		(32	)
Payment of income taxes		(23	)
Net cash flows from operating activities					$	26
Cash Flows from Investing Activities:
Sale of investments						79
Cash Flows from Financing Activities:
Issuance of common stock		13
Payment of dividends		(8	)
Net cash flows from financing activities						5
Net increase in cash					$	110

GRANDVIEW CORPORATION Income Statement For the Year Ended December 31, 2021
Sales revenue				$	136
Cost of goods sold					46
Gross profit					90
Operating expenses:
General and administrative expense	$	32
Depreciation expense		24
Total operating expenses					56
Operating income					34
Other income:
Gain on sale of investments					15
Income before income taxes					49
Income tax expense					13
Net income				$	36

Required: 1. Calculate the missing amounts. 2. Prepare the operating activities section of Grandviews 2021 statement of cash flows using the indirect method.

• Required 2

Prepare the operating activities section of Grandviews 2021 statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

GRANDVIEW CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2021
($ in millions)
Cash flows from operating activities:
Adjustments for noncash effects:
Changes in operating assets and liabilities:
Net cash flows from operating activities		$0