Question
The following information has been reported by Laporte Inc. on its statements of financial position at December 31, 2019 and 2020 and on its statement
The following information has been reported by Laporte Inc. on its statements of financial position at December 31, 2019 and 2020 and on its statement of earnings for the year ended December 31, 2020. Amounts are in millions of dollars: Statements of Financial Position 2020 2019 Cash $ 102 $ 74 Accounts receivable 40 30 Merchandise inventory 34 38 Long-term investments - 24 Property, plant, and equipment 214 172 Accumulated depreciation (84 ) (102 ) Total assets $ 306 $ 236 Accounts payable $ 30 50 Income taxes payable 9 10 Long-term borrowings 86 26 Contributed capital 127 106 Retained earnings 54 44 Total liabilities and shareholders equity $ 306 $ 236 Statement of Earnings Sales $ 158 Cost of sales (90 ) Gross profit 68 Depreciation expense (16 ) Other operating expenses (37.0 ) Earnings from operations 15.0 Gain on sale of investments 12 Loss on sale of equipment (8 ) Earnings before income tax 19.0 Income tax expense 7.6 Net earnings $ 11.4 Additional information is as follows: Old equipment was sold for cash during 2020. It had an original cost of $46 and an accumulated depreciation of $34. 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. Required:
1. Prepare a statement of cash flows for Laporte Inc. for the year ended December 31, 2020 by using the direct method. (Negative answers should be indicated by a minus sign. Enter your answers in millions. Round your answer to 1 decimal place.)
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