Cash flows from operating, investing, and financing activities—direct method The fol...

Cash flows from operating, investing, and financing activities—direct method The following information is available from Gray Co.’s accounting records for the year ended December 31, 2013 (amounts in millions):

Required:

a. The net cash provided by operating activities for Gray Co. for the year ended December 31, 2013, is $3,675 million. Calculate the cash paid to suppliers and employees.

b. The increase in cash for the year was $750 million. Calculate the amount of cash used to purchase buildings and equipment. Your answer to part a should be considered in your calculation. (Hint: Set up a model of the statement of cash flows to determine the net cash provided [used] by operating and investing activities, and then solve for the missing amounts.)