Problem

Preparing the Investing and Financing Sections of the Statement of Cash FlowsStarwood Hote...

Preparing the Investing and Financing Sections of the Statement of Cash Flows

Starwood Hotels&Resorts Worldwide, Inc., is one of the world’s largest hotel and leisure companies. It conducts business both directly and through its subsidiaries, including the following hotel brands: Sheraton. Four Points. W. Aloft. The Luxury Collection, Le Meridien. Element. Westin, and St. Regis.* Information adapted from the company’s recent annual statement of cash flows indicates the following investing and financing activities during that year (simplified, in millions of dollars):

Additional borrowing from banks

$986

Purchase of investments

37

Sale of assets and investments (assume sold at cost)

359

Issuance of stock

120

Purchase and renovation of properties

476

Payment of debt principal

574

Receipt of principal payment on a note receivable

172

Required:

Prepare the investing and financing sections of the statement of cash flows for Starwood Hotels. Assume that year-end is December 31, 2012.

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