P5-5 (Appendix 5A) Preparing the Statement of Cash Flows with Sale of Equipment (Indirect Method) LO5-2,5-3,5-5, 5-S1 The following information has been reported by Laporte Inc. on its statements of financial position at December 31, 2016 and 2017, and on its statement of earnings for the year ended December 31, 2017. Amounts are in millions of dollars: Statements of Financial Position 2017 Cash $ 145 Accounts receivable 74 Merchandise inventory 57 Long-term investments Property, plant, and equipment 234 Accumulated depreciation (46) 2016 $ 83 54 62 48 184 (66) Total assets $ 464 $365 Accounts payable Income taxes payable Long-term borrowings Contributed capital Retained earnings Total liabilities and shareholders' equity $ 54 6 141 196 67 68 7 71 175 44 $ 464 $365 Statement of Earnings Sales Cost of sales $ 215 (129) Gross profit Depreciation expense Other operating expenses 86 (10) (50) Earnings from operations Gain on sale of investments Loss on sale of equipment 26 8 (2) Earnings before income tax Income tax expense 32 7 Net earnings $ 25 Additional information is as follows: a. Old equipment was sold for cash during 2017. It had an original cost of $50 and an accumulated depreciation of $30. b. A new building was acquired during the year in exchange for a long-term note for $70, payable in five years. In addition, new equipment was purchased for cash. Prepare the operating activities section of the statement of cash flows for Laporte Inc. for the year ended December 31, 2017 by using the indirect method. (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, 2017 Cash flows from operating activities: Add (deduct) items not affecting cash: Net cash used for operating activities Prepare the investing activities section of the statement of cash flows for Laporte Inc. for the year ended December 31, 2017. (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, 2017 Cash flows from investing activities: Net cash flow from investing activities