Question

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 $ 124 Accounts receivable 51 Merchandise inventory 45 Long-term investments Property, plant, and equipment Accumulated depreciation (95) 2016 $ 85 41 49 35 247 208 (113) Total assets $ 372 $305 $ 41 20 Accounts payable Income taxes payable Long-term borrowings Contributed capital Retained earnings 37 117 149 65 55 Total liabilities and shareholders' equity $ 372 $ 305 Statement of Earnings Sales Cost of sales $ 191 (101) Gross profit Depreciation expense Other operating expenses 90 (27) (42.5) 20.5 Earnings from operations Gain on sale of investments Loss on sale of equipment 23 (19) Earnings before income tax Income tax expense 24.5 9.8 Net earnings $ 14.7 Additional information is as follows: a. Old equipment was sold for cash during 2017. It had an original cost of $57 and an accumulated depreciation of $45. 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 a statement of cash flows for Laporte Inc. for the year ended December 31, 2017 by using the direct method. (Negative answers should be indicated by a minus sign. Enter your answers in millions.) LAPORTE INC. Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from operating activities: Cash payments: $ 0.0 Net cash used for operating activities Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Cash balance, January 1, 2017 Cash balance, December 31, 2017

Answer 1

Laporte Tne Skatement s Cash flows Fox he Year ended December 31,2019 Amau Aunt Cash flas from operally achibes Cash eceived om customer Incyease in account e celvable (S1-41) 161 payment cash paid to sypples Cash 181 - 128 for Income-far Cs ) Cash paid 13.9 xpenaespeaene) for Cash Par Net Cash flou from operair actuin -3. 3 Cash Aos from Inveshn achbes leng tesm Tnvestment (35t 23) puschase of eaiprment (3) Sale 58 36 pispose coat d eipment CS7-u912-19 Net Cash flaw from Inve shr achfe ! $ ) 15 Cash How tre Financirg activites capital Centribut en (4-) Dividend pad 32 -4-7 Net Cash flos trom Financig actuile 27.3 Nek cash flou $ 39 Cosh balane onuan ,20l7 35 Cash balance Dece mbe 3,20171 8124 cS Scanned with CamScanner

wayking Notes Amaumt Cs) 1 Cash paid b supplier Cost of Sales 101 de len acseasc in 2nventory q-45 (4) Al es decreae in Accounts 3 1 (28 2 Gsh paid-Intcme Tam Income tar apene decreae in ncome tan payaHe 9-9 add 24-20 13.8 purchase eqipment Property flant and euipment 3. baane 2०6 Leys A sset Sald (cost) Add: Bui lding len closig balance as on 2017 g21) 1247) 36 Dividend paid et Earnirgs 4. ४।५-7 len Increaxe in Retained eOTning 4-7 C65-55) 5. Dispose cat eguipment Cost ACcComulated dep Less 12 CS Scanned with CamScanner Loss an egpi pmenb sale
Cash received from customer right directly $181 in main answer, instead of showing seperately (191-10)