In preparation for developing its statement of cash flows for the year just ended, D-Rose Distributors collected the following information: ($ in millions)Purchase of treasury bills (considered a cash equivalent) 6.6 Sale of preferred stock 150.6 Gain on sale of land 4.6 Proceeds from sale of land 25.6 Issuance of bonds payable for cash 140.6 Purchase of equipment for cash 30.6 Purchase of GE stock 35.6 Declaration of cash dividends 134.6 Payment of cash dividends declared in previous year 130.6 Purchase of treasury stock 120.6 Payment for the early extinguishment oflong-term notes (carrying (book) value: $100 million) 110.6 Required:1. Prepare the investing activities section of D-Rose's statement of cash flows.2. Prepare the financing activities section of D-Rose's statement of cash flows.(For all requirements, list any cash outflow with a minus sign. Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

Cash flow from investing activities is the portion of the cash flow statement that shows the amount…

Answered: In preparation for developing its…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 55PSA

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In preparation for developing its statement of cash flows for the year just ended, D-Rose Distributors collected the following information:

	($ in millions)
Purchase of treasury bills (considered a cash equivalent)		6.6
Sale of preferred stock		150.6
Gain on sale of land		4.6
Proceeds from sale of land		25.6
Issuance of bonds payable for cash		140.6
Purchase of equipment for cash		30.6
Purchase of GE stock		35.6
Declaration of cash dividends		134.6
Payment of cash dividends declared in previous year		130.6
Purchase of treasury stock		120.6
Payment for the early extinguishment of long-term notes (carrying (book) value: $100 million)		110.6

Required:
1. Prepare the investing activities section of D-Rose's statement of cash flows.
2. Prepare the financing activities section of D-Rose's statement of cash flows.
(For all requirements, list any cash outflow with a minus sign. Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

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