Question

The following information has been reported by Laporte Inc. on its statements of financial position at...

The following information has been reported by Laporte Inc. on its statements of financial position at December 31, 2016 and 2017, and on its statement of earnings for the year ended December 31, 2017. Amounts are in millions of dollars:
Statements of Financial Position
2017 2016
  Cash $ 104 $ 75
  Accounts receivable 41 31
Merchandise inventory 35 39
Long-term investments - 25
Property, plant, and equipment 217 175
Accumulated depreciation (85 ) (103 )
     Total assets $ 312 $ 242
  Accounts payable $ 31 52
  Income taxes payable 10 11
  Long-term borrowings 87 27
  Contributed capital 129 107
  Retained earnings 55 45
     Total liabilities and shareholders’ equity $ 312 $ 242
Statement of Earnings
Sales $ 161
Cost of sales (91 )
     Gross profit 70
Depreciation expense (17 )
Other operating expenses (37.5 )
Earnings from operations 15.5
Gain on sale of investments 13
Loss on sale of equipment (9 )
Earnings before income tax 19.5
Income tax expense 7.8
     Net earnings $ 11.7

  

Additional information is as follows:
a. Old equipment was sold for cash during 2017. It had an original cost of $47 and an accumulated depreciation of $35.
b. A new building was acquired during the year in exchange for a long-term note for $60, payable in five years. In addition, new equipment was purchased for cash.
Required:
1. Prepare a statement of cash flows for Laporte Inc. for the year ended December 31, 2017 by using the direct method. (Negative answers should be indicated by a minus sign. Enter your answers in millions.)  

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