Answered: Cash $ 125 $ 80 Accounts…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 15E

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Statements of Financial Position
	2020		2019
Cash	$	125		$	80
Accounts receivable		68			48
Merchandise inventory		49			56
Long-term investments		-			42
Property, plant, and equipment		215			178
Accumulated depreciation		(57	)		(72	)
Total assets	$	400		$	332
Accounts payable	$	48			62
Income taxes payable		5			6
Long-term borrowings		111			61
Contributed capital		180			160
Retained earnings		56			43
Total liabilities and shareholders’ equity	$	400		$	332
Statement of Earnings
Sales	$	200
Cost of sales		(120	)
Gross profit		80
Depreciation expense		(10	)
Other operating expenses		(51	)
Earnings from operations		19
Gain on sale of investments		6
Loss on sale of equipment		(2	)
Earnings before income tax		23
Income tax expense		6
Net earnings	$	17

Based on your answers to (1.) and (2.) above, determine the net cash flow from financing activities. (Hint: This can be done without preparing the financing activities section of the statement.) (Enter your answer in millions.)

Cash flow from financing activities

LAPORTE INC.
Statement of Cash Flows (Partial)
For the Year Ended December 31, 2020
Cash flows from investing activities:
Purchase of equipment
Sale of equipment
Sale of long-term investment
Net cash flow from investing activities
$
$
(35)
21
48
34

LAPORTE INC.
Statement of Cash Flows (Partial)
For the Year Ended December 31, 2020
Cash flows from operating activities:
Net earnings
Add (deduct) items not affecting cash:
Decrease in accounts payable
Decrease in income tax payable
Decrease in merchandise inventory
Depreciation expense
Gain on sale of investments
Increase in accounts receivable
Loss on sale of equipment
Net cash used for operating activities
17
(14)
(1)
7
10
(6)
(20)
2
(5)

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