Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 company's comparative balance sheets. These financial statements are shown next ($ in millions). 1 GRANDVIEW CORPORATION Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities: Collections from customers Payment to suppliers Payment of general & administrative expenses Payment of income taxes Net cash flows from operating activities Cash Flows from Investing Activities: Sale of investments Cash Flows from Pinancing Activities: Issuance of common stock Payment of dividends Net cash flows from financing activities Net increase in cash 79 (32) (20) (11) $ 16 67 12 5 $ 88 GRANDVIEW CORPORATION Income Statement For the Year Ended December 31, 2021 Sales revenue Cost of goods sold Gross profit Operating expenses General and administrative expense $ 20 Depreciation expense 12 Total operating expenses Operating income $ 88 34 54 32 22 $ 88 34 54 GRANUVIEW LURPURATLUN Income Statement For the Year Ended December 31, 2021 Sales revenue Cost of goods sold Gross profit Operating expenses: General and administrative expense $ 20 Depreciation expense 12 Total operating expenses Operating income Other income! Gain on sale of investments Income before income taxes Income tax expense Net income 32 22 es 15 37 8 $ 29 Required: 1. Calculate the missing amounts. 2. Prepare the operating activities section of Grandview's 2021 statement of cash flows using the indirect method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the missing amounts. (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 to be deducted should be indicated with a minus sign. Enter your answers i millions (i.e., 10,000,000 should be entered as 10).) GRANDVIEW CORPORATION Balance Sheets At December 31 2021 2020 Assets: + 147 86 52 62 152 152 (69) Cash Accounts receivable Investments Inventory Property, plant & equipment Less: Accumulated depreciation Total assets Liabilities and Shareholders' Equity Accounts payable Accrued liabilities (for selling & admin. expense) Income taxes payable Common stock Retained earnings Total liabilities and shareholders' equity 42 32 11 11 24 244 232 44 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions