Question

In preparation for developing its statement of cash flows for the year ended December 31, 2021, Rapid Pac, Inc., collected the following information:

	($ in millions)
Fair value of shares issued in a stock dividend	$	68.0
Payment for the early extinguishment of long-term bonds (book value: $81.0 million)		86.0
Proceeds from the sale of treasury stock (cost: $17.0 million)		22.0
Gain on sale of land		2.6
Proceeds from sale of land		7.8
Purchase of Microsoft common stock		142.0
Declaration of cash dividends		51.0
Distribution of cash dividends declared in 2020		47.0

In Rapid Pac’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

Statement of cash flows (partial)

Cash Flows from financing activities	($ in millions)
Payment for the early extinguishment of long-term bonds	- 86
Proceeds from the sale of treasury stock	22
Distribution of cash dividends declared in 2020	- 47
Net cash outflows from financing activities	- $111

Net cash outflows from financing activities = - $111 MILLIONS

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Answer 2