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				2016
Cash	$	90			$	70
Accounts receivable		38				28
Merchandise inventory		30				36
Long-term investments		-				22
Property, plant, and equipment		192				158
Accumulated depreciation		(67	)			(92	)
Total assets	$	283			$	222
Accounts payable	$	28				42
Income taxes payable		4				5
Long-term borrowings		81				21
Contributed capital		130				120
Retained earnings		40				34
Total liabilities and shareholders equity	$	283			$	222
Statement of Earnings
Sales	$	150
Cost of sales		(90	)
Gross profit		60
Depreciation expense		(10	)
Other operating expenses		(40	)
Earnings from operations		10
Gain on sale of investments		7
Loss on sale of equipment		(2	)
Earnings before income tax		15
Income tax expense		5
Net earnings	$	10

Additional information is as follows:
a.	Old equipment was sold for cash during 2017. It had an original cost of $50 and an accumulated depreciation of $35.
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.

Required:
1a.	Prepare the operating activities section of the statement of cash flows for Laporte Inc. for the year ended December 31, 2017 by using the indirect method.

b	Prepare the investing activities section of the statement of cash flows for Laporte Inc. for the year ended December 31, 2017.
c.	Compute each of the following for the year 2017: (a) quality of earnings ratio, (b) capital expenditures ratio, and (c) free cash flow

e.

d. Based on your answers to (1.) and (2.) above, determine the net cash flow from financing activities. (Hint: This can be done without preparing the financing activities section of the statement.) 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 dont 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 Tanyas comment, compute the following amounts for 2017: (Enter your answers in millions.)