The following information is available from Gray Co.s accounting records for the year ended December 31, 2010

Question:

The following information is available from Gray Co.’s accounting records for the year ended December 31, 2010 (amounts in millions):
Cash dividends declared and paid. . . . . . . . . . . . . . . . . . . . . . . . . $ 350
Retirement of bonds payable at . . . . . . . . . . . . . . . . . . . . 200
Interest and taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
Proceeds of issued . . . . . . . . . . . . . . . . . . . . . . . . 550
Proceeds from the sale of land . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Collections from customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,175
Cash paid to suppliers and employees . . . . . . . . . . . . . . . . . . . . . ?
Purchase of buildings and equipment . . . . . . . . . . . . . . . . . . . . . . ?

Required:
a. The net cash provided by operating activities for Gray Co. for the year ended December 31, 2010, is $1,225 million. Calculate the cash paid to suppliers and employees.
b. The increase in cash for the year was $250 million. Calculate the amount of cash used to purchase buildings and equipment. Your answer to part a should be considered in your calculation.

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