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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

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 $ 133
Payment to suppliers (45)
Payment of general and administrative expense (36)
Payment of income taxes (27)
Net cash flows from operating activities $ 25
Cash Flows from Investing Activities:
Sale of investments 83
Cash Flows from Financing Activities:
Issuance of common stock 17
Payment of dividends (8)
Net cash flows from financing activities 9
Net increase in cash $ 117
GRANDVIEW CORPORATION
Income Statement
For the Year Ended December 31, 2021
Sales revenue $ 152
Cost of goods sold 50
Gross profit 102
Operating expenses:
General and administrative expense $ 36
Depreciation expense 28
Total operating expenses 64
Operating income 38
Other income:
Gain on sale of investments 12
Income before income taxes 50
Income tax expense 16
Net income $ 34

Required:

  1. Calculate the missing amounts.
  2. Prepare the operating activities section of Grandviews 2021 statement of cash flows using the indirect method.
image text in transcribed

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(\$ in millions) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities be entered as 10 )

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