Gibraltar Industries is a Buffalo, New York–based manufacturer of high-value-added steel products. In a recent year, it reported the following activities:

Acquisitions (investments in other companies) $ (8,724)

Decrease in inventories 1,770

Depreciation and amortization 33,907

Long-term debt reduction (185,567)

Net cash provided by operating activities 107,874

Net income 24,068

Net proceeds from issuance of common stock 250

Net proceeds from sale of property and equipment 2,692

Payment of dividends (5,985)

Proceeds from long-term debt 53,439

Proceeds from sale of other equity investments 34,701

Purchases of property, plant, and equipment (21,595)

Required:

1. Based on this information, present the cash flows from investing and financing activities sections of the cash flow statement.

2. Compute the capital acquisitions ratio. What does the ratio tell you about Gibraltar’s ability to finance purchases of property, plant, and equipment with cash provided by operating activities?

3. What do you think was Gibraltar management’s plan for the use of the cash generated by selling other equity investments?