The following information is available from Gray Co.'s accounting records for the year ended December 31, 2016 (amounts in millions): Cash dividends declared and paid $ 525   Retirement of bonds payable at maturity   300   Interest and taxes paid   220   Proceeds of common stock issued   825   Proceeds from the sale of land   250   Collections from customers   4,720   Cash paid to suppliers and employees   ?   Purchase of buildings and equipment   ?     a. The net cash provided by operating activities for Gray Co. for the year ended December 31, 2016, is $1,800 million. Calculate the cash paid to suppliers and employees. (Enter your answer in millions. (i.e., 5,000,000 should be entered as 5)) b. The increase in cash for the year was $400 million. Calculate the amount of cash used to purchase buildings and equipment. Your answer to part a should be considered in your calculation. (Hint: Set up a model of the statement of cash flows to determine the net cash provided [used] by operating and investing activities, and then solve for the missing amounts.) (Enter your answer in millions. (i.e., 5,000,000 should be entered as 5))

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following information is available from Gray Co.'s accounting records for the year ended December 31, 2016 (amounts in millions):

Cash dividends declared and paid $ 525  
Retirement of bonds payable at maturity   300  
Interest and taxes paid   220  
Proceeds of common stock issued   825  
Proceeds from the sale of land   250  
Collections from customers   4,720  
Cash paid to suppliers and employees   ?  
Purchase of buildings and equipment   ?  
 

a. The net cash provided by operating activities for Gray Co. for the year ended December 31, 2016, is $1,800 million. Calculate the cash paid to suppliers and employees. (Enter your answer in millions. (i.e., 5,000,000 should be entered as 5))

b. The increase in cash for the year was $400 million. Calculate the amount of cash used to purchase buildings and equipment. Your answer to part a should be considered in your calculation. (Hint: Set up a model of the statement of cash flows to determine the net cash provided [used] by operating and investing activities, and then solve for the missing amounts.) (Enter your answer in millions. (i.e., 5,000,000 should be entered as 5))

 

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