The following information has been reported by Laporte Inc. on its statements of financial position at...
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The following information has been reported by Laporte Inc. on its statements of financial position at December 31, 2023 and 2022 and on its statement of earnings for the year ended December 31, 2023. Amounts are in millions of dollars: Statements of Financial Position Cash Accounts receivable Merchandise inventory Long-term investments Property, plant, and equipment Accumulated depreciation Total assets Accounts payable Income taxes payable Long-term borrowings Share capital Retained earnings 2023 2022 $ 120 $ 76 52 40 42 - 201 (60) 48 34 170 (80) $ 288 $ 355 $ 40 $ 54 7 8 103 43 114 100 91 83 $ 355 $ 288 Statement of Earnings $ 180 (108) Total liabilities and shareholders' equity Sales Cost of sales Gross profit Depreciation expense Other operating expenses Earnings from operations Gain on sale of investments Loss on sale of equipment Earnings before income tax Income tax expense Net earnings 72 (10) (45) 17 6 (2) 21 8 $ 13 Additional information is as follows: a. Old equipment was sold for cash during 2023. It had an original cost of $54 and an accumulated depreciation of $30. b. A new building was acquired during the year in exchange for a long-term note for $60, payable in five years. In addition, new equipment was purchased for cash. 2. Prepare the investing activities section of the statement of cash flows for Laporte Inc. for the year ended December 31, 2023. (Negative answers should be indicated by a minus sign. Enter your answers in millions.) LAPORTE INC. Statement of Cash Flows (Partial) For the Year Ended December 31, 2023 Cash flows from investing activities: Purchase of equipment Sale of equipment Sale of long-term investment Net cash flows from investing activities $ 0 3. Compute each of the following for the year 2023: (a) quality of earnings ratio, (b) capital expenditures ratio, and (c) free cash flow. (Negative answers should be indicated by a minus sign. Round "Ratio" answers to 2 decimal places.) (a) Quality of earnings ratio (b) Capital expenditures ratio (c) Free cash flow 4. Based on your answers to (1.) and (2.) above, determine the net cash flow from financing activities. (Hint: This can be done without preparing the financing activities section of the statement.) (Enter your answer in millions.) Cash flow from financing activities 5. The president of Laporte Inc., Tanya Turcotte, was provided with a copy of the operating activities section of the statement of cash flows that you prepared in (1), and made the following comment: "This report is supposed to show operating cash inflows and outflows during the year, but I don't see how much cash Laporte Inc. received from customers and how much it paid to trade suppliers and for income taxes. Please ask whoever prepared this statement to provide me with these numbers." Based on Tanya's comment, compute the following amounts for 2023: (Enter your answers in millions.) a. Cash collected from customers b. Cash paid to trade suppliers C. Cash paid for income taxes The following information has been reported by Laporte Inc. on its statements of financial position at December 31, 2023 and 2022 and on its statement of earnings for the year ended December 31, 2023. Amounts are in millions of dollars: Statements of Financial Position Cash Accounts receivable Merchandise inventory Long-term investments Property, plant, and equipment Accumulated depreciation Total assets Accounts payable Income taxes payable Long-term borrowings Share capital Retained earnings 2023 2022 $ 120 $ 76 52 40 42 - 201 (60) 48 34 170 (80) $ 288 $ 355 $ 40 $ 54 7 8 103 43 114 100 91 83 $ 355 $ 288 Statement of Earnings $ 180 (108) Total liabilities and shareholders' equity Sales Cost of sales Gross profit Depreciation expense Other operating expenses Earnings from operations Gain on sale of investments Loss on sale of equipment Earnings before income tax Income tax expense Net earnings 72 (10) (45) 17 6 (2) 21 8 $ 13 Additional information is as follows: a. Old equipment was sold for cash during 2023. It had an original cost of $54 and an accumulated depreciation of $30. b. A new building was acquired during the year in exchange for a long-term note for $60, payable in five years. In addition, new equipment was purchased for cash. 2. Prepare the investing activities section of the statement of cash flows for Laporte Inc. for the year ended December 31, 2023. (Negative answers should be indicated by a minus sign. Enter your answers in millions.) LAPORTE INC. Statement of Cash Flows (Partial) For the Year Ended December 31, 2023 Cash flows from investing activities: Purchase of equipment Sale of equipment Sale of long-term investment Net cash flows from investing activities $ 0 3. Compute each of the following for the year 2023: (a) quality of earnings ratio, (b) capital expenditures ratio, and (c) free cash flow. (Negative answers should be indicated by a minus sign. Round "Ratio" answers to 2 decimal places.) (a) Quality of earnings ratio (b) Capital expenditures ratio (c) Free cash flow 4. Based on your answers to (1.) and (2.) above, determine the net cash flow from financing activities. (Hint: This can be done without preparing the financing activities section of the statement.) (Enter your answer in millions.) Cash flow from financing activities 5. The president of Laporte Inc., Tanya Turcotte, was provided with a copy of the operating activities section of the statement of cash flows that you prepared in (1), and made the following comment: "This report is supposed to show operating cash inflows and outflows during the year, but I don't see how much cash Laporte Inc. received from customers and how much it paid to trade suppliers and for income taxes. Please ask whoever prepared this statement to provide me with these numbers." Based on Tanya's comment, compute the following amounts for 2023: (Enter your answers in millions.) a. Cash collected from customers b. Cash paid to trade suppliers C. Cash paid for income taxes
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To prepare the investing activities section of the statement of cash flows for Laporte Inc for the year ended December 31 2023 we need to analyze the ... View the full answer
Related Book For
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
Posted Date:
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