The following information is available from Gray Co.s accounting records for the year ended December 31, 2019

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The following information is available from Gray Co.’s accounting records for the year ended December 31, 2019 (amounts in millions):

Cash dividends declared and paid . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 950
Retirement of bonds payable at maturity . . . . . . . . . . . . . . . . . . . . . . 600
Interest and taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440
Proceeds of common stock issued . . . . . . . . . . . . . . . . . . . . . . . . . . 1,250
Proceeds from the sale of land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500
Collections from customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,940
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, 2019, is $3,200 million. Calculate the cash paid to suppliers and employees.

b. The increase in cash for the year was $800 million. Calculate the amount of cash used to purchase buildings and equipment. Your answer to part a should be considered in your calculation. Set up a model of the statement of cash flows to determine the net cash provided [used] by operating and investing activities, and then solve for the missing amounts.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Related Book For  answer-question

Accounting What the Numbers Mean

ISBN: 978-1260565492

12th edition

Authors: David Marshall, Wayne McManus, Daniel Viele

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