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Consider the following comparative balance sheets for the Midland Manufacturing Corporation. Midland Manufacturing Corporation Comparative Balance...

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 $ 4.2 $ 1.2
    Accounts receivable, net 7.1 7.6
    Inventories 13.0 13.7
    Total current assets $24.3 $22.5
Property and equipment $80.3 $115.5
Less: Accumulated depreciation 16.8 25.6
Net property and equipment $63.5 $89.9
    Total assets $87.8 $112.4
Liabilities and Stockholder's Equity
Current liabilities:
    Accounts payable $ 7.6 $ 9.4
    Other current liabilities 6.5 8.0
    Total current liabilities $14.1 $17.4
Long-term debt 18.2 31.9
Deferred federal income taxes $1.2 $1.3
Stockholders’ equity:
    Common stock $ 3.1 $ 3.1
    Additional paid-in capital 28.6 28.6
    Retained earnings 22.6 30.1
    Total stockholders’ equity $54.3 $61.8
        Total liabilities and stockholders’ equity $87.8 $112.4
*Net income for the year ended December 31, Year 2, totaled $10.7 million; dividends paid during the same period totaled $3.2 million; $2.5 million of long-term debt was retired in Year 2; and fixed assets were sold during Year 2 for $1.4 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 $
    Adjustments to reconcile net income to net cash provided
            from operating activities
    Depreciation
    (Increase) decrease in current assets or liabilities
            Accounts receivable
            Inventories
            Accounts payable
            Other current liabilities
    Increase (decrease) in deferred taxes
    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 $

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jeff jeffy answered 2 years ago
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