The following information is available from Gray Co.\'s accounting records for t
ID: 2529452 • Letter: T
Question
The following information is available from Gray Co.'s accounting records for the year ended December 31, 2016 (amounts in millions):
Question: The increase in cash for the year was $400 million. Calculate the amount of cash used to purchase buildings and equipment. Your answer to part a should be considered in your calculation. (Hint: 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.) (Enter your answer in millions. (i.e., 5,000,000 should be entered as 5))
Cash dividends declared and paid $ 525 Retirement of bonds payable at maturity 300 Interest and taxes paid 220 Proceeds of common stock issued 825 Proceeds from the sale of land 250 Collections from customers 4,720 Cash paid to suppliers and employees ? Purchase of buildings and equipment ?Question: The increase in cash for the year was $400 million. Calculate the amount of cash used to purchase buildings and equipment. Your answer to part a should be considered in your calculation. (Hint: 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.) (Enter your answer in millions. (i.e., 5,000,000 should be entered as 5))
Explanation / Answer
Cash flows from Operating activities Cash collections from Customer 4720 Cash from Investing Activities Sale of land 250 Cash flows from Financing Activities: cash dividend paiid -525 Retirement of bonds -300 Interest and taxes paid -220 Proceeds of common Stock 825 Net cash used in Financing activities -220 Total Cash increase during the year 4750 Actual Increase in Cash during the year 400 Cash used in purchase for equipment and Building 4350 Note: In the absence of two information, the cash paid to supplier and employees has been taken as Nil
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