Question

In preparation for developing its statement of cash flows for the year ended December 31, 2018,...

In preparation for developing its statement of cash flows for the year ended December 31, 2018, Rapid Pac, Inc., collected the following information:

($ in millions)

Fair value of shares issued in a stock dividend $ 60.0

Payment for the early extinguishment of

long-term bonds (book value: $79.0 million) 84.0

Proceeds from the sale of treasury stock (cost: $15.0million) 20.0

Gain on sale of land 2.4

Proceeds from sale of land 7.2

Purchase of Microsoft common stock 138.0

Declaration of cash dividends 49.0

Distribution of cash dividends declared in 2017 45.0

Required:

1. In Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2018?

2. In Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from financing activities for 2018?

In Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2018? (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).)

($ in millions)

Cash Flows From Investing Activities:

Net cash inflows (outflows) from investing activities

In Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from financing activities for 2018? (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).)

($ in millions)

Cash Flows from Financing Activities:

Net cash inflows (outflows) from financing activities

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Answer #1

SOLUTION

(A) Cash Flows From Investing Activities

Amount ($)
Cash Flows From Investing Activities:
Proceeds from sale of land 7.2
Purchase of Microsoft common stock (138.0)
Net cash (outflows) from investing activities 130.8

(B) Cash Flows from Financing Activities

Amount ($)
Cash Flows from Financing Activities:
Payment for the early extinguishment of long-term bonds (84.0)
Proceeds from the sale of treasury stock 20.0
Distribution of cash dividends declared in 2017 (45.0)
Net cash inflows (outflows) from financing activities (109.0)
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