Midland Manufacturing Corporation Statement of Cash Flows For the Year Ended December 31, Year 2 ($ millions) Cash Flows from Operating Activities: Net Income Adjustments to reconcile net income to net cash provided from operating activities Depreciation (Increase) decrease in current assets or liabilities %24
Midland Manufacturing Corporation Statement of Cash Flows For the Year Ended December 31, Year 2 ($ millions) Cash Flows from Operating Activities: Net Income Adjustments to reconcile net income to net cash provided from operating activities Depreciation (Increase) decrease in current assets or liabilities %24
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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(This is AFTER both screenshots)
| Accounts receivable | |
| Inventories | |
| Accounts payable | |
| Other current liabilities | |
| Increase (decrease) in |
|
| Total adjustments | |
| Net cash provided from (used by) operating activities | |
| Cash Flows from Investing Activities | |
| Proceeds from sale of facilities or equipment | |
| Capital expenditures | |
| Net cash used by investing activities | |
| Cash Flows from Financing Activities | |
| Proceeds from issuance of long-term debt | |
| Repayments of long-term debt | |
| Dividends paid | |
| Net cash provided from (used by) financing activities | |
| Net Increase (Decrease) in Cash | |
| Cash - Beginning of Year | |
| Cash - End of Year | $ |
Transcribed Image Text:Stockholders' equity:
Common stock
$ 3.3
$ 3.3
Additional paid-in capital
28.9
28.9
Retained earnings
24.8
30.5
Total stockholders' equity
$57.0
$62.7
Total liabilities and stockholders' equity
$91.2
$113.8
*Net income for the year ended December 31, Year 2, totaled $9.2 million; dividends paid during the same
period totaled $3.5 million; $1.6 million of long-term debt was retired in Year 2; and fixed assets were sold
during Year 2 for $0.9 million.
Prepare a statement of cash flows (using the indirect method) for the Midland Manufacturing Corporation for the year ending December Year 2, based on the
comparative balance sheets shown above. Use minus sign to indicate cash outflows. Enter your answers in millions. For example, an answer of $1.2 million
should be entered as 1.2, not 1,200,000. Round your answers to one decimal place.
Midland Manufacturing Corporation
Statement of Cash Flows For the Year Ended December 31, Year 2
($ millions)
Cash Flows from Operating Activities:
Net Income
2$
Adjustments to reconcile net income to net cash provided
from operating activities
Depreciation
(Increase) decrease in current assets or liabilities
Transcribed Image Text:Consider the following comparative balance sheets for the Midland Manufacturing Corporation.
Midland Manufacturing Corporation
Comparative Balance Sheets (in Millions of Dollars)*
December 31,
December 31,
Year 1
Year 2
Assets
Current assets:
Cash
$ 5.0
$ 0.6
Accounts receivable, net
7.4
8.0
Inventories
14.5
14.7
Total current assets
$26.9
$23.3
Property and equipment
$80.4
$115.5
Less: Accumulated depreciation
16.1
25.0
Net property and equipment
$64.3
90.5
Total assets
$91.2
$113.8
Liabilities and Stockholder's Equity
Current liabilities:
Accounts payable
$ 7.8
$ 9.5
Other current liabilities
6.3
8.8
Total current liabilities
$14.1
$18.3
Long-term debt
19.0
31.5
Deferred federal income taxes
$1.1
$1.3
Stockholders' equity:
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