Prepare a statement of cash flows (using the indirect method) for the Midland Manufacturing Corporation for...

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Prepare a statement of cash flows (using the indirect method) for the Midland Manufacturing Corporation for the year ending December 2016, based on the following comparative balance sheets. Midland Manufacturing Corporation Comparative Balance Sheets (in Millions of Dollars)* December 31, 2015 December 31, 2016 Assets Current assets: Cash $ 4.9 $ 0.8 Accounts receivable, net 7.2 7.5 Inventories Total current assets Property and equipment Less: Accumulated depreciation 16.3 Net property and equipment $ 64.4 Total assets $ 90.3 13.8 $25.9 $ 80.7 14.5 $ 22.8 $115.0 25.8 $ 89.2 $112.0 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 8.0 $ 9.5 Other current liabilities 6.0 8.2 Total current liabilities $ 14.0 $ 17.7 Long-term debt 18.8 31.8 Deferred federal income taxes 1.2 1.4 Stockholders' equity: Common stock $ 3.0 $ 3.0 Additional paid-in capital 29.0 29.0 Retained eamings 24.3 29.1 Total stockholders' equity $ 56.3 $61.1 Total liabilities and stockholders' equity $ 90.3 $112.0 *Net income for the year ended December 31, 2016, totaled $8.3 million; dividends paid during the same period totaled $3.5 million; $2.0 million of long-term debt was retired in 2016; and fixed assets were sold during 2016 for $1.0 million. *Color blocks behind the numbers denote problems that have check answers provided at the end of the book. Prepare a statement of cash flows (using the indirect method) for the Midland Manufacturing Corporation for the year ending December 2016, based on the following comparative balance sheets. Midland Manufacturing Corporation Comparative Balance Sheets (in Millions of Dollars)* December 31, 2015 December 31, 2016 Assets Current assets: Cash $ 4.9 $ 0.8 Accounts receivable, net 7.2 7.5 Inventories Total current assets Property and equipment Less: Accumulated depreciation 16.3 Net property and equipment $ 64.4 Total assets $ 90.3 13.8 $25.9 $ 80.7 14.5 $ 22.8 $115.0 25.8 $ 89.2 $112.0 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 8.0 $ 9.5 Other current liabilities 6.0 8.2 Total current liabilities $ 14.0 $ 17.7 Long-term debt 18.8 31.8 Deferred federal income taxes 1.2 1.4 Stockholders' equity: Common stock $ 3.0 $ 3.0 Additional paid-in capital 29.0 29.0 Retained eamings 24.3 29.1 Total stockholders' equity $ 56.3 $61.1 Total liabilities and stockholders' equity $ 90.3 $112.0 *Net income for the year ended December 31, 2016, totaled $8.3 million; dividends paid during the same period totaled $3.5 million; $2.0 million of long-term debt was retired in 2016; and fixed assets were sold during 2016 for $1.0 million. *Color blocks behind the numbers denote problems that have check answers provided at the end of the book.

Answer rating: 100% (QA)

Operating Activities Net income 83 million Adjustments to reconcile net income to net cash provided ... View the full answer