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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
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). $ 112 (39) (28) (19) 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 cana Net cash flows from operating activities Cash Flows from Investing Activities: Sale of investments Cash Flows from Financing Activities: Issuance of common stock Payment of dividends Net cash flows from financing activities Net increase in cash $ 26 75 15 (8) 7 $ 108 $ 120 42 78 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 $ 28 Depreciation expense 20 Total operating expenses Operating income Other income: Gain on sale of investments Income before income taxes Income tax expense Net income *1823031 $ 42 Required: 1. Calculate the missing amounts. 2. Prepare the operating activities section of Grandview's 2021 statement of cash flows using the indirect method. 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 Balance Sheets At December 31 2021 2020 Assets: Cash 175 102 Accounts receivable 63 94 Investments 55 70 160 160 (85) 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 52 40 19 19 32 255 240 30 Required 1 Required 2 Prepare the operating activities section of Grandview's 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
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