For the Year Ended December 31, 2020 Cash flows from operating activities: Net earnings Add (deduct) items not affecting cash: Decrease in accounts payable Decrease in income tax payable Decrease in merchandise inventory Depreciation expense Gain on sale of investments $ 17 (14) (1) ► 7 10 (6)
For the Year Ended December 31, 2020 Cash flows from operating activities: Net earnings Add (deduct) items not affecting cash: Decrease in accounts payable Decrease in income tax payable Decrease in merchandise inventory Depreciation expense Gain on sale of investments $ 17 (14) (1) ► 7 10 (6)
For the Year Ended December 31, 2020 Cash flows from operating activities: Net earnings Add (deduct) items not affecting cash: Decrease in accounts payable Decrease in income tax payable Decrease in merchandise inventory Depreciation expense Gain on sale of investments $ 17 (14) (1) ► 7 10 (6)
Transcribed Image Text:LAPORTE INC.
Statement of Cash Flows (Partial)
For the Year Ended December 31, 2020
Cash flows from operating activities:
Net earnings
Add (deduct) items not affecting cash:
Decrease in accounts payable
Decrease in income tax payable
Decrease in merchandise inventory
Depreciation expense
Gain on sale of investments
Increase in accounts receivable
Loss on sale of equipment
Net cash used for operating activities
17
(14)
(1)
7
10
(6)
(20)
2
(5)
Transcribed Image Text:LAPORTE INC.
Statement of Cash Flows (Partial)
For the Year Ended December 31, 2020
Cash flows from investing activities:
Purchase of equipment
Sale of equipment
Sale of long-term investment
Net cash flow from investing activities
$
$
(35)
21
48
34
Definition Definition Cash that is left over after a company has paid for its operating and capital expenses. Unlike net income or earnings, free cash flow excludes non-cash expenses of the income statement and includes the expenditures on equipment and assets. Free cash flow also helps potential shareholders to evaluate how quickly the company can pay interest and dividends.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
