In preparation for developing its statement of cash flows for the year ended December 31, 2021, Rapid Pac, Inc., collected the following information:     ($ in millions) Fair value of shares issued in a stock dividend $ 116.0   Payment for the early extinguishment of long-term bonds (book value: $93.0 million)   98.0   Proceeds from the sale of treasury stock (cost: $29.0 million)   34.0   Gain on sale of land   3.8   Proceeds from sale of land   11.4   Purchase of Microsoft common stock   166.0   Declaration of cash dividends   63.0   Distribution of cash dividends declared in 2020   60.0       2. In Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from financing activities for 2021?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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In preparation for developing its statement of cash flows for the year ended December 31, 2021, Rapid Pac, Inc., collected the following information:
 

  ($ in millions)
Fair value of shares issued in a stock dividend $ 116.0  
Payment for the early extinguishment of
long-term bonds (book value: $93.0 million)
  98.0  
Proceeds from the sale of treasury stock (cost: $29.0 million)   34.0  
Gain on sale of land   3.8  
Proceeds from sale of land   11.4  
Purchase of Microsoft common stock   166.0  
Declaration of cash dividends   63.0  
Distribution of cash dividends declared in 2020   60.0  
 

 

2. In Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from financing activities for 2021? 

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why this is not a finance activity? 

air value of shares issued in a stock dividend $ 116.0
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