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 Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).
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