The following information has been reported by Laporte Inc. on its statements of financial position at December 31, 2023 and 2022 and on its statement of earnings for the year ended December 31, 2023. Amounts are in millions of dollars: Cash Accounts receivable Statements of Financial Position 2023 $ 140 2022 $ 82 72 52

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Chapter1: Financial Statements And Business Decisions
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The following information has been reported by Laporte Inc. on its statements of financial position at December 31, 2023 and 2022
and on its statement of earnings for the year ended December 31, 2023. Amounts are in millions of dollars:
Statements of Financial Position
2023
Cash
Accounts receivable
Merchandise inventory
Long-term investments
Property, plant, and equipment
$ 140
2022
$ 82
72
52
51
60
46
199
182
Accumulated depreciation
Total assets
Accounts payable
Income taxes payable
Long-term borrowings
Share capital
Retained earnings
Total liabilities and shareholders' equity
(48)
(68)
$ 414
$ 354
$ 52
$ 66
6
7
123
73
186
170
47
38
$ 414
$ 354
Statement of Earnings
Sales
$ 210
Cost of sales
Gross profit
Depreciation expense
Other operating expenses
Earnings from operations
Gain on sale of investments
Loss on sale of equipment
Earnings before income tax
Income tax expense
Net earnings
(126)
84
(10)
(57)
17
7
(2)
22
7
$
15
Additional information is as follows:
a. Old equipment was sold for cash during 2023. It had an original cost of $58 and an accumulated depreciation of $30.
b. A new building was acquired during the year in exchange for a long-term note for $50, payable in five years. In addition, new
equipment was purchased for cash.
Required:
1. Prepare the operating activities section of the statement of cash flows for Laporte Inc. for the year ended December 31, 2023 by
using the indirect method. (Negative answers should be indicated by a minus sign. Enter your answers in millions.)
Transcribed Image Text:The following information has been reported by Laporte Inc. on its statements of financial position at December 31, 2023 and 2022 and on its statement of earnings for the year ended December 31, 2023. Amounts are in millions of dollars: Statements of Financial Position 2023 Cash Accounts receivable Merchandise inventory Long-term investments Property, plant, and equipment $ 140 2022 $ 82 72 52 51 60 46 199 182 Accumulated depreciation Total assets Accounts payable Income taxes payable Long-term borrowings Share capital Retained earnings Total liabilities and shareholders' equity (48) (68) $ 414 $ 354 $ 52 $ 66 6 7 123 73 186 170 47 38 $ 414 $ 354 Statement of Earnings Sales $ 210 Cost of sales Gross profit Depreciation expense Other operating expenses Earnings from operations Gain on sale of investments Loss on sale of equipment Earnings before income tax Income tax expense Net earnings (126) 84 (10) (57) 17 7 (2) 22 7 $ 15 Additional information is as follows: a. Old equipment was sold for cash during 2023. It had an original cost of $58 and an accumulated depreciation of $30. b. A new building was acquired during the year in exchange for a long-term note for $50, payable in five years. In addition, new equipment was purchased for cash. Required: 1. Prepare the operating activities section of the statement of cash flows for Laporte Inc. for the year ended December 31, 2023 by using the indirect method. (Negative answers should be indicated by a minus sign. Enter your answers in millions.)
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