9th Edition

ISBN: 9781259722660

Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher: McGraw-Hill Education

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Textbook Question

Chapter 21, Problem 21.14E

Identifying cash flows from investing activities and financing activities

• LO21–5, LO21–6

In preparation for developing its statement of cash flows for the year ended December 31, 2018, Millennium Solutions, Inc. collected the following information:

	($ in millions)
Payment for the early extinguishments of long-term notes (book value: $50 million)	$ 54
Sale of common shares	176
Retirement of common shares	122
Loss on sale of equipment	2
Proceeds from sale of equipment	8
Issuance of short-term note payable for cash	10
Acquisition of building for cash	7
Purchase of marketable securities (not a cash equivalent)	5
Purchase of marketable securities (considered a cash equivalent)	1
Cash payment for 3-year insurance policy	3
Collection of note receivable with interest (principal amount, $11)	13
Declaration of cash dividends	33
Distribution of cash dividends declared in 2017	30

Required:

1. In Millennium’s statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2018?
2. In Millennium’s statement of cash flows, what were net cash inflows (or outflows) from financing activities for 2018?

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Chapter 21, Problem 21.13E

Chapter 21, Problem 21.15E

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Chapter 21 Solutions

Intermediate Accounting

Ch. 21 - Effects of all cash flows affect the balances of...Ch. 21 - Prob. 21.2Q Ch. 21 - Prob. 21.3Q Ch. 21 - Prob. 21.4Q Ch. 21 - Prob. 21.5Q Ch. 21 - Prob. 21.6Q Ch. 21 - Prob. 21.7Q Ch. 21 - The sale of stock and the sale of bonds are...Ch. 21 - Does the statement of cash flows report only...Ch. 21 - Prob. 21.10Q

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