Question

In preparation for developing its statement of cash flows for the year ended December 31, 2018, Millennium Solutions, Inc. collected the following information:

	($ in millions)
Payment for the early extinguishments of long-term notes (book value: $68.0 million)	$	72.0
Sale of common shares		216.0
Retirement of common shares		132.0
Loss on sale of equipment		3.0
Proceeds from sale of equipment		12.0
Issuance of short-term note payable for cash		20.0
Acquisition of building for cash		12.0
Purchase of marketable securities (not a cash equivalent)		15.0
Purchase of marketable securities (considered a cash equivalent)		11.0
Cash payment for 3-year insurance policy		13.0
Collection of note receivable with interest (principal amount, $21)		23.0
Declaration of cash dividends		52.0
Distribution of cash dividends declared in 2017		49.0

Required:
1. In Millennium’s statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2018?
2. In Millennium’s statement of cash flows, what were net cash inflows (or outflows) from financing activities for 2018?

Required 1

In Millennium’s statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2018? (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

	($ in millions) Cash Flows From Investing Activities: Net cash inflows (outflows) from investing activities

Required 2

In Millennium’s statement of cash flows, what were net cash inflows (or outflows) from financing activities for 2018? (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

5,500,000 should be entered as 5.5).)

	($ in millions) Cash Flows from Financing Activities: Net cash inflows (outflows) from financing activities

Answer 1

1. In Millennium’s statement of net cash inflows (or outflows) from investing activities for 2018

	($ in millions) Cash Flows From Investing Activities: Proceeds from sale of equipment 12.0 Acquisition of building for cash -12.0 Purchase of marketable securities (not a cash equivalent) -15.0 Net cash inflows (outflows) from investing activities -15.0

2. In Millennium’s statement of net cash inflows (or outflows) from financing activities for 2018

($ in millions) Cash Flows from Financing Activities: Payment for the early extinguishments of long-term notes (book value: $68.0 million) -72.0 Sale of common shares 216.0 Collection of note receivable with interest (principal amount, $21) 2.0 Distribution of cash dividends declared in 2017 -49.0 Retirement of common shares -132.0 Net cash inflows (outflows) from financing activities -35.0