The following information has been reported by Laporte Inc. on its statements of financial position at December 31, 2023 and 2022 and on its statement of earnings for the year ended December 31, 2023. Amounts are in millions of dollars: Statements of Financial Position Cash Accounts receivable Merchandise inventory Long-term investments Property, plant, and equipment Accumulated depreciation Total assets Accounts payable Income taxes payable Long-term borrowings Share capital Retained earnings Total liabilities and shareholders' equity Sales Cost of sales Gross profit Depreciation expense Statement of Earnings. Other operating expenses Earnings from operations Gain on sale of investments Loss on sale of equipment Earnings before income tax Income tax expense Net earnings 2022 $ 76 |: 355 40 $ $ Additional information is as follows: a. Old equipment was sold for cash during 2023. It had an original cost of $54 and an accumulated depreciation of $30. 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, 2023 by using the indirect method. (Negative answers should be indicated by a minus sign. Enter your answers in millions.) Answer is complete and correct. LAPORTE INC. statement of Cash Flows (Partial) For the Year Ended December 31, 2023 Cash flows from operating activities: Net earnings Add (deduct) items not affecting cash: Decrease in accounts payable Increase in accounts receivable Decrease in income taxes payable Decrease in merchandise inventory Depreciation expense Gain on sale of investments Loss on sale of equipment C $ 13 (14) (12) (1) 6 10 (6) 2 Net cash flows used for operating activities $ (2) 2. Prepare the investing activities section of the statement of cash flows for Laporte Inc. for the year ended December 31, 2023. (Negative answers should be indicated by a minus sign. Enter your answers in millions.) Answer is complete and correct. LAPORTE INC. Statement of Cash Flows (Partial) For the Year Ended December 31, 2023 Cash flows from investing activities: Purchase of equipment Sale of equipment Sale of long-term investment Net cash flows from investing activities $ (25) 22 40 $ 37 3. Compute each of the following for the year 2023: (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.) Answer is complete but not entirely correct. (a) Quality of earnings ratio (b) Capital expenditures ratio (0.15) (0.08) (c) Free cash flow $ (38) x 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.) Answer is complete but not entirely correct. Cash flow from financing activities $ 5x 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 2023: (Enter your answers in millions.) Answer is not complete. a. Cash collected from customers $ 168 b. Cash paid to trade suppliers C. Cash paid for income taxes