Ask Question
BusinessBusiness
20 December, 08:59

In preparation for developing its statement of cash flows for the year just ended, D-Rose Distributors collected the following information: ($ in millions) Purchase of treasury bills (considered a cash equivalent) 6.7 Sale of preferred stock 150.7 Gain on sale of land 4.7 Proceeds from sale of land 25.7 Issuance of bonds payable for cash 140.7 Purchase of equipment for cash 30.7 Purchase of GE stock 35.7 Declaration of cash dividends 134.7 Payment of cash dividends declared in previous year 130.7 Purchase of treasury stock 120.7 Payment for the early extinguishment of long-term notes (carrying (book) value: $100 million) 110.7 Required: 1. Prepare the investing activities section of D-Rose's statement of cash flows. 2. Prepare the financing activities section of D-Rose's statement of cash flows.

+3
Answers (1)
  1. 20 December, 09:45
    0
    Answer and Explanation:

    1. The preparation of the investing activities is presented below:

    Cash flow from investing activities

    Proceeds from sale of land $25.7

    Purchase of equipment for cash - $30.7

    Purchase of GE stock - $35.7

    Net cash used by investing activities - $40.7

    2. The preparation of the financing activities is presented below:

    Cash flow from financing activities

    Sale of preferred stock 150.7

    Issuance of bonds payable for cash 140.7

    Payment of cash dividends declared in previous year - 130

    Purchase of treasury stock - 120

    Payment for the early extinguishment of long-term notes (carrying (book) value: $100 million) - 110.7

    Net cash used by financing activities - $69.3

    The minus sign shows the cash outflow and the positives sign shows the cash inflow
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “In preparation for developing its statement of cash flows for the year just ended, D-Rose Distributors collected the following information: ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
How do Human Development Index (HDI) and gross domestic product (GDP) compare in what they measure? HDI and GDP both measure economic development only. HDI measures human development, while GDP measures economic development.
Answers (2)
Eagle Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters.
Answers (1)
A worker's success in contributing to the common good is A. increased when she or he becomes a supervisor. B. greater in vertical relationships. C. measured by how well she or he does the job. D. determined by their supervisor.
Answers (1)
Johnson Company manufactures a variety of shoes, and has received a special one-time-only order directly from a wholesaler. Johnson has sufficient idle capacity to accept the special order to manufacture 15,000 pairs of sneakers at a price of $7.
Answers (1)
Suver Corporation has a standard costing system. The following data are available for June Actual quantity of direct materials purchased 20,000 pounds. standard price of direct materials $ 7.00 per pound.
Answers (1)
New Questions in Business
A Trek Cycles manufactures and sells bicycles to retailers. The X-1 model sells for $500 and has per-unit variable costs of $300 associated with its production. The company has fixed expenses of $30,000 per month.
Answers (1)
A firm supplies aircraft engines to the government and to private firms. It must decide between two mutually exclusive contracts. If it contracts with a private firm, its profit will be $2 million, $1 million, or - $1 million with probabilities. 25,.
Answers (1)
Important business data that is not known to the public is considered what type of information?
Answers (1)
On january 1, applied technologies corporation (atc) issued $510,000 in bonds that mature in 10 years. the bonds have a stated interest rate of 8 percent. when the bonds were issued, the market interest rate was 8 percent.
Answers (1)
What is strategy implementation what questions must strategy makers consider to begin the imlimentation process?
Answers (1)
Home » Business » In preparation for developing its statement of cash flows for the year just ended, D-Rose Distributors collected the following information: ($ in millions) Purchase of treasury bills (considered a cash equivalent) 6.7 Sale of preferred stock 150.
Sign Up Forgot Password?