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Question 3 and 5 please. Will give thumbs up! The following information has been reported by Laporte Inc. on its statements of financial position
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Question 3 and 5 please. Will give thumbs up!
The following information has been reported by Laporte Inc. on its statements of financial position at December 31, 2016 and 2017, and on its statement of earnings for the year ended December 31, 2017. Amounts are in millions of dollars: Statements of Financial Position 2017 Cash $ 89 Accounts receivable 36 Merchandise inventory 29 Long-term investments Property, plant, and equipment 209 Accumulated depreciation (83) 2016 $ 69 26 34 20 156 (94) Total assets $280 $ 211 Accounts payable Income taxes payable Long-term borrowings Contributed capital Retained earnings $ 26 4 86 128 36 40 5 26 110 30 Total liabilities and shareholders' equity $280 $ 211 Statement of Earnings Sales Cost of sales $ 145 (87) 58 (10) (37) Gross profit Depreciation expense Other operating expenses Earnings from operations Gain on sale of investments Loss on sale of equipment Earnings before income tax Income tax expense 11 5 (2) 14 5 Net earnings $ 9 Additional information is as follows: a. Old equipment was sold for cash during 2017. It had an original cost of $30 and an accumulated depreciation of $21. b. A new building was acquired during the year in exchange for a long-term note for $60, payable in five years. In addition, new equipment was purchased for cash. 3. Compute each of the following for the year 2017: (a) quality of earnings ratio, (b) capital expenditures ratio, and (c) free cash flow. (Negative answers should be indicated by a minus sign. Round "Ratio" answers to 2 decimal places.) (a) Quality of earnings ratio (b) Capital expenditures ratio (c) Free cash flow 5. The president of Laporte Inc., Tanya Turcotte, was provided with a copy of the operating activities section of the statement of cash flows that you prepared in (1.), and made the following comment: "This report is supposed to show operating cash inflows and outflows during the year, but I don't see how much cash Laporte Inc. received from customers and how much it paid to trade suppliers and for income taxes. Please ask whoever prepared this statement to provide me with these numbers." Based on Tanya's comment, compute the following amounts for 2017: (Enter your answers in millions.) a. Cash collected from customers b. Cash paid to trade suppliers c. Cash paid for income taxesStep by Step Solution
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