[SOLVED] Financial Statements
The following information has been reported by Laporte Inc. on its statements of financial position atDecember 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 Position20172016Cash$ 130$ 88Accounts receivable5444Merchandise inventory4852Long-term investments38Property, plant, and equipment256220Accumulated depreciation(98)(116)Total assets$ 390$ 326Accounts payableS4478Income taxes payable2330Long-term borrowings10040Contributed capital155120Retained earnings68Total liabilities and shareholders’ equityS$ 326Statement of EarningsSales$ 200Cost of sales(104)Gross profit96Depreciation expense(30)Other operating expenses(44.0)Earnings from operations22.0Gain on sale of investments26Loss on sale of equipment(22)Earnings before income tax26.0Income tax expense10.4Net earnings$ 15.6Additional information is as follows:a. Old equipment was sold for cash during 2017. It had an original cost of $60 and an accumulateddepreciation of $48.b. A new building was acquired during the year in exchange for a long-term note for $60, payable in fiveyears. 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 thedirect method. (Negative answers should be indicated by a minus sign. Enter your answers inmillions.)
Haven’t found relevant content or pressed for time? –Don’t worry, you have a team of Accounting professionals to help you.
All you need to do is fill in the order form in the upper right corner and upload the files that are crucial for your assignment. Also, don’t forget to specify whether your assignment has to be based upon specific research, theory, method, or program. After that, we will assign the most suitable expert to complete your assignment. You can always chat with your expert and ask any questions you have during the working process.