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	$	91
Payment to suppliers		(39	)
Payment of general & administrative expenses		(24	)
Payment of income taxes		(15	)
Net cash flows from operating activities					$	13
Cash Flows from Investing Activities:
Sale of investments						71
Cash Flows from Financing Activities:
Issuance of common stock		11
Payment of dividends		(6	)
Net cash flows from financing activities						5
Net increase in cash					$	89

GRANDVIEW CORPORATION Income Statement For the Year Ended December 31, 2021
Sales revenue				$	104
Cost of goods sold					38
Gross profit					66
Operating expenses:
General and administrative expense	$	24
Depreciation expense		16
Total operating expenses					40
Operating income					26
Other income:
Gain on sale of investments					10
Income before income taxes					36
Income tax expense					6
Net income				$	30

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

GRANDVIEW CORPORATION
Balance Sheets
At December 31
	2021	2020
Assets:
Cash	151
Accounts receivable		90
Investments		61
Inventory	66
Property, plant & equipment	156	156
Less: Accumulated depreciation	(77)
Total assets
Liabilities and Shareholders Equity:
Accounts payable	46	36
Accrued liabilities (for selling & admin. expense)	15	15
Income taxes payable	28
Common stock	247	236
Retained earnings		39
Total liabilities and shareholders equity