PLEASE DO QUESTIONS $2-5$

P$11-5($Algo$)($Appendix $11$A$)$ Preparing the Statement of Cash Flows with Sale of Equipment $($Indirect Method$)$ LO$11-2,11-3,11-5,11-$S$1$

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:

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Statements of Financial Position$20232022$Cash$$120$$$78$Accounts receivable$6444$Merchandise inventory$4752$Long$-$term investments$-38$Property$,$ plant, and equipment$213174$Accumulated depreciation$(68)(76)$Total assets$$376$$$310$Accounts payable$$44$$$58$Income taxes payable$45$Long$-$term borrowings$9747$Share capital$162150$Retained earnings$6950$Total liabilities and shareholders$$ equity$$376$$$310$Statement of EarningsSales$$190$Cost of sales$(114)$Gross profit$76$Depreciation expense$(10)$Other operating expenses$(45)$Earnings from operations$21$Gain on sale of investments$7$Loss on sale of equipment$(2)$Earnings before income tax$26$Income tax expense$5$Net earnings$$21$

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Additional information is as follows:

Old equipment was sold for cash during $2023.$ It had an original cost of $$36$ and an accumulated depreciation of $$18.$

A new building was acquired during the year in exchange for a long$-$term note for $$50,$ payable in five years. In addition, new equipment was purchased for cash.

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Required:

$1.$ Prepare the operating activities section of the statement of cash flows for Laporte Inc. for the year ended December $31,2023$ by using the indirect method. $($Negative answers should be indicated by a minus sign. Enter your answers in millions.$)$

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$2.$ 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.$)$

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$3.$ 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.$)$

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$4.$ 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.$)$

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$5.$ 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.$)$

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