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    Cash flows from operating activities provided $1,350 million, from collections of $4,050 million offset by payments of $270 million for interest and taxes and $2,430 million to suppliers and employees. Cash flows from investing activities used $390 million, from purchases of $510 million for land and buildings offset by proceeds of $120 million from equipment sales. Cash flows from financing activities used $780 million, from payments of $1,020 million for dividends and $660 million for long-term debt offset by $900 million from preferred stock issuance. The overall net increase in cash for the year was $180 million.

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    Cash flows from operating activities provided $1,350 million, from collections of $4,050 million offset by payments of $270 million for interest and taxes and $2,430 million to suppliers and employees. Cash flows from investing activities used $390 million, from purchases of $510 million for land and buildings offset by proceeds of $120 million from equipment sales. Cash flows from financing activities used $780 million, from payments of $1,020 million for dividends and $660 million for long-term debt offset by $900 million from preferred stock issuance. The overall net increase in cash for the year was $180 million.

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    97 views3 pages

    Problem 9.25

    Uploaded by

    C
    Cash flows from operating activities provided $1,350 million, from collections of $4,050 million offset by payments of $270 million for interest and taxes and $2,430 million to suppliers and employees. Cash flows from investing activities used $390 million, from purchases of $510 million for land and buildings offset by proceeds of $120 million from equipment sales. Cash flows from financing activities used $780 million, from payments of $1,020 million for dividends and $660 million for long-term debt offset by $900 million from preferred stock issuance. The overall net increase in cash for the year was $180 million.

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    Download as XLSX, PDF, TXT or read online from Scribd
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    of 3

    Problem 9.

    25

    Cash flows from operating, investing, and financing activities—direct method  The following information is available from Bromfield Co

    Cash dividends declared and paid $1,020

    Interest and taxes paid 270

    Collections from customers 4,050

    Payment of long-term debt 660

    Purchase of land and buildings 510

    Cash paid to suppliers and


    2,430
    employees

    Issuance of preferred stock 900

    Proceeds from the sale of


    120
    equipment

    Required:

    a. Calculate the net cash provided


    (used) by operating activities for
    Bromfield Co. for the year ended
    December 31, 2019.

    b. Calculate the net cash provided


    (used) by investing activities.

    c. Calculate the net cash provided


    (used) by financing activities.

    d. Calculate the net increase (decrease)


    in cash for the year.

    (Amount In Millions)
    A Cash flows from operating activities
    Interest and taxes paid -$270.00
    Collections from customers $4,050.00
    Cash paid to suppliers and employees -$2,430.00
    Net cash provided by operating activities $1,350.00

    B Cash flows from investing activities


    Purchase of land and buildings -$510.00
    Proceeds from sale of equipment $120.00
    Net cash provided by investing activities -$390.00

    C Cash flows from financing activities


    Cash dividends declared and paid -$1,020.00
    Payment of long-term debt -$660.00
    Issuance of preferred stock $900.00
    Net cash provided by financing activities -$780.00

    D Net increase (decrease) in cash for the year $180.00


    tion is available from Bromfield Co.’s accounting records for the year ended December 31, 2019 (amounts in millions):

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