Question

! Required information (The following information applies to the questions displayed below.) In preparation for developing its statement of cash flows for the year ended December 31, 2021, Millennium Solutions, Inc. collected the following information: ($ in millions) Payment for the early extinguishments of long-term notes (book value: $44.0 million) Sale of common shares Retirement of common shares Loss on sale of equipment Proceeds from sale of equipment Issuance of short-term note payable for cash Acquisition of building for cash Purchase of marketable securities (not a cash equivalent) Purchase of marketable securities (considered a cash equivalent) Cash payment for 3-year insurance policy Collection of note receivable with interest (principal amount, $13) Declaration of cash dividends Distribution of cash dividends declared in 2020 $ 48.0 184.0 124.0 2.2 8.8 12.0 8.0 7.0 3.0 5.0 15.0 36.0 33.0 2. In Millennium's statement of cash flows, what were net cash inflows (or outflows) from financing activities for 2021? (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).)

Answer 1

Answer:

	($ in million)
Cash flows from financing activities:
Repayment of long-term notes	($ 48)
Sale on common shares	$ 184
Retirement of common shares	($ 124)
Distribution of cash dividends declared in 2020	($ 33)
Net cash inflows (outflows) from financing activities	($ 21)

Explanations for other items:

	($ In millions)	Explanation
Loss on sale of equipment	2.2	Operating activity
Proceeds from sale of equipment	8.8	Investing activity
Issuance of short-term note payable for cash	12.0	Operating activity
Acquisition of building for cash	8.0	Investing activity
Purchase of marketable securities (not a cash equivalent)	7.0	Investing activity
Purchase of marketable securities (Considered a cash equivalent)	3.0	Included in cash
Cash payment for 3-year insurance policy	5.0	Operating activity
Collection of note receivable with interest (principal amount, $13)	15.0	Operating activity
Declaration of cash dividends	36.0	Non-cash

*Short-term notes payable is 'Operating activity' where as 'Long-term notes payable' is 'Financing activity'.