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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

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:image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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 Cash $ 100 Accounts receivable 50 Merchandise inventory 41 Long-term investments Property, plant, and equipment Accumulated depreciation (72) 2016 $ 75 38 46 32 168 (82) 224 Total assets $ 343 $277 Accounts payable Income taxes payable Long-term borrowings Contributed capital Retained earnings $ 38 7 95 139 64 52 8 35 130 52 Total liabilities and shareholders' equity $343 $277 Sales Cost of sales Statement of Earnings $ 175 (105) Gross profit Depreciation expense Other operating expenses 70 (10) (42) Earnings from operations Gain on sale of investments Loss on sale of equipment 18 8 (2) Earnings before income tax Income tax expense 24 8 Net earnings $ 16 Additional information is as follows: a. Old equipment was sold for cash during 2017. It had an original cost of $34 and an accumulated depreciation of $20. 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: 1. 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. (Negative answers should be indicated by a minus sign. Enter your answers in millions.) LAPORTE INC. Statement of Cash Flows (Partial) For the Year Ended December 31, 2017 Cash flows from operating activities: Add (deduct) items not affecting cash: Net cash used for operating activities $ 0 2. Prepare the investing activities section of the statement of cash flows for Laporte Inc. for the year ended December 31, 2017. (Negative answers should be indicated by a minus sign. Enter your answers in millions.) LAPORTE INC. Statement of Cash Flows (Partial) For the Year Ended December 31, 2017 Cash flows from investing activities: Net cash flow from investing activities $ 0 3. Compute each of the following for the year 2017: (a) quality of earnings ratio, (b) capital expenditures ratio, and (c) free cash flow. (Negative answers should be indicated by a minus sign. Round "Ratio" answers to 2 decimal places.) (a) Quality of earnings ratio (b) Capital expenditures ratio (c) Free cash flow 4. 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.) (Enter your answer in millions.) Cash flow from financing activities 5. 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 don't 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 Tanya's comment, compute the following amounts for 2017: (Enter your answers in millions.) a. Cash collected from customers b. Cash paid to trade suppliers c. Cash paid for income taxes

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