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, 2019 and 2020 and on its statement of earnings for the year ended December 31, 2020. Amounts are in millions of dollars: Statements of Financial Position Cash 2020 $ 90 $ 68 24 32 Accounts receivable Merchandise inventory Long-term investments Property, plant, and equipment Accumulated depreciation Total assets Accounts payable Income taxes payable Long-term borrowings Contributed capital Retained earnings Total liabilities and shareholders' equity $270 34 28 196 (78) $270 $ 24 3 SO 115 2019 48 18 154 (96) $200 $ 38 4 20 100 38 $200 Sales Cost of sales Gross profit Statement of Earnings 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 | * - - 91 $140 (84) (10) (34) T Additional information is as follows: a. Old equipment was sold for cash during 2020. It had an original cost of $40 and an accumulated depreciation of $28. 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. Required: 1. Prepare the operating activities section of the statement of cash flows for Laporte Inc. for the year ended December 31, 2020. Use the indirect method to report the cash flow from operations. CO Required: 1. Prepare the operating activities section of the statement of cash flows for Laporte Inc. for the year ended December 31, 2020. Use the indirect method to report the cash flow from operations. 2. Prepare the investing activities section of the statement of cash flows for Laporte Inc. for the year ended December 31, 2020. 3. Compute and explain each of the following for the year 2020: (a) quality of earnings ratio. (b) capital expenditures ratio, and (c) free cash flow. The following information has been reported by Laporte Inc. on its statements of financial position at December 31, 2019 and 2020 and on its statement of earnings for the year ended December 31, 2020. Amounts are in millions of dollars: Statements of Financial Position Cash 2020 $ 90 $ 68 24 32 Accounts receivable Merchandise inventory Long-term investments Property, plant, and equipment Accumulated depreciation Total assets Accounts payable Income taxes payable Long-term borrowings Contributed capital Retained earnings Total liabilities and shareholders' equity $270 34 28 196 (78) $270 $ 24 3 SO 115 2019 48 18 154 (96) $200 $ 38 4 20 100 38 $200 Sales Cost of sales Gross profit Statement of Earnings 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 | * - - 91 $140 (84) (10) (34) T Additional information is as follows: a. Old equipment was sold for cash during 2020. It had an original cost of $40 and an accumulated depreciation of $28. 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. Required: 1. Prepare the operating activities section of the statement of cash flows for Laporte Inc. for the year ended December 31, 2020. Use the indirect method to report the cash flow from operations. CO Required: 1. Prepare the operating activities section of the statement of cash flows for Laporte Inc. for the year ended December 31, 2020. Use the indirect method to report the cash flow from operations. 2. Prepare the investing activities section of the statement of cash flows for Laporte Inc. for the year ended December 31, 2020. 3. Compute and explain each of the following for the year 2020: (a) quality of earnings ratio. (b) capital expenditures ratio, and (c) free cash flow.
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1 Operating Activities Net earnings 12 Adjustments to reconcile net earnings to net cash provided by ... View the full answer
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
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