Prepare the Statement of Cash Flows - Investing and Financing Sections in good f
ID: 2556480 • Letter: P
Question
Prepare the Statement of Cash Flows - Investing and Financing Sections in good form:
III. Preparation of statement of cash flows investing and financing activities (15 points) In preparation for developing its statement of cash flows for the year just ended, Schmidt Distributors collected the following information (S in millions) Purchase of treasury bills (considered a cash equivalent) Sale of preferred stock Gain on sale of land Proceeds from sale of land Issuance of bonds payable for cash Purchase of equipment for cash Purchase of GE stock Declaration of cash dividends Payment of cash dividends declared in previous year Purchase of treasury stock Payment for the early extinguishment of 150 4 25 140 30 35 130 120 long-term notes (carrying (book) value: $100 million) Required: 1. In good form, prepare the investing activities section of Schmidt's cash flow statement 110 2. In good form, prepare the financing activities section of Schmidt's cash flow statement.Explanation / Answer
Investing section of cash flow statement Proceeds from sale of land 25 purchase of equipment for cash -30 Purchase of GE stock -35 Net cash flow from investing activities -40 Financing activities section of cash flow statement sale of preferred stock 150 issuance of bond payable 140 payment of cash dividends -130 purchase of treasury stock -120 payment of early extinguishment if long term debt -110 Net cash flows from financing activities -70