Question

The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for National Intercable Company. Additional information from NIC's accounting records is provided also. ΝΑΤΙΟΝAL INTERCABLE COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) 2018 2017 Assets $ 154 404 $ 135 395 Cash Accounts receivable Less: Allowance for uncollectible (6) (8) асcounts Prepaid insurance Inventory Long-term investment Land 8 13 384 375 70 115 260 390 260 Buildings and equipment Less: Accumulated depreciation 360 (125) 20 (155) Trademark 18 $1,525 $1,542 Liabilities Accounts payable Salaries payable Deferred income tax liability Lease liability Bonds payable 70 51 4 7 19 16 97 0 325 (36) 155 Less: Discount on bonds (31) Shareholders' Equity 360 130 Common stock 390 Paid-in capital-excess of par Preferred stock Retained earnings 140 60 0 670 640 $1,525 $1,542

Is it correct? What is the acquired equipment? 110 or 97?

Answer 1

National Intercable Company Statement of Cash Flows For the year ended December 31, 2018
Cash flows from Operating Activities
Cash inflows
From customers	537
From investment revenue	12
Cash outflows
For suppliers	(278)
For employees	(78)
For employees	(35)
For income taxes	(32)
For bond interest	(50)
Net cash flows from Operating Activities		76
Cash Flows from Investing Activities
Proceeds from sale of investments	55
Salvage proceeds of building	6
Net cash flows from Investing Activities		61
Cash Flows from Financing Activities
Proceeds from issuance of common stock	40
Proceeds from issuance preferred stock	60
Payment of lease liability	(13)
Retirement of bonds	(170)
Payment of cash dividends	(35)
Net cash used in Financing Activities		(118)
Increase in cash		19
Cash balance, January 1		135
Cash balance, December 31		154

Acquired equipment : $ 110 million.

$ 97 is the outstanding balance of the lease liability.