In preparation for developing its statement of cash flows for the year ended Dec

Question

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

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 millions) Fair value of shares issued in a stock dividend $ 64.0 Payment for the early extinguishment of
long-term bonds (book value: $80.0 million) 85.0 Proceeds from the sale of treasury stock (cost: $16.0million) 21.0 Gain on sale of land 2.5 Proceeds from sale of land 7.5 Purchase of Microsoft common stock 140.0 Declaration of cash dividends 50.0 Distribution of cash dividends declared in 2017 46.0

Explanation / Answer

Cash flow from investing activities ($in millions)

Cash flows from financing activities ($ in millions)  

Proceeds form sale of land 7.5 Purchase of Microsoft Common stock -140.0 Net cash outflows from investing activities 132.5

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