21.1 HW 2 - 2 Award 33.33 out of 33.33 points ,2016,Millennium Solutions,Inc,($inmillions longtermnotes(bookvalue:$80.0m

21.1 HW 2 - 2 Award 33.33 out of 33.33 points...

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Unformatted text preview: 2. Award: 33.33 out of 33.33 points In preparation for developing its statement of cash flows for the year ended December 31, 2016, Millennium Solutions, Inc., collected the following information ($ in millions): Payment for the early extinguishments of long­term notes (book value: $80.0 million) Sale of common shares Retirement of common shares Loss on sale of equipment Proceeds from sale of equipment Issuance of short­term note payable for cash Acquisition of building for cash Purchase of marketable securities (not a cash equivalent) Purchase of marketable securities (considered a cash equivalent) Cash payment for 3­year insurance policy Collection of note receivable with interest (principal amount, $25) Declaration of cash dividends Distribution of cash dividends declared in 2015 ($ in millions) $ 84.0 $232.0 136.0 3.4 13.6 24.0 14.0 19.0 15.0 17.0 27.0 60.0 57.0 Required: 1. In Millennium’s statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2016? (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) ($ in millions) Cash Flows From Investing Activities: Proceeds from sale of equipment $ 13.6 Acquisition of building for cash (14.0) Purchase of marketable securities (19.0) Collection of note receivable with interest Net cash inflows (outflows) from investing activities 25.0 $ 5.6 2. In Millennium’s statement of cash flows, what were net cash inflows (or outflows) from financing activities for 2016? (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) ($ in millions) Cash Flows from Financing Activities: Payment for the early extinguishment of long­term notes $ (84.0) Sale of common shares 232.0 Retirement of common shares (136.0) Issuance of short­term note payable for cash 24.0 Distribution of cash dividends declared in 2015 (57.0) $ Net cash inflows (outflows) from financing activities (21.0) References Worksheet Learning Objective: Learning Objective: 21­06 Identify 21­05 Identify transactions that are classified as transactions that are financing activities. classified as investing activities. In preparation for developing its statement of cash flows for the year ended December 31, 2016, Millennium Solutions, Inc., collected the following information ($ in millions): Payment for the early extinguishments of long­term notes (book value: $80.0 million) Sale of common shares Retirement of common shares Loss on sale of equipment Proceeds from sale of equipment Issuance of short­term note payable for cash Acquisition of building for cash Purchase of marketable securities (not a cash equivalent) Purchase of marketable securities (considered a cash equivalent) Cash payment for 3­year insurance policy Collection of note receivable with interest (principal amount, $25) Declaration of cash dividends Distribution of cash dividends declared in 2015 ($ in millions) $ 84.0 $232.0 136.0 3.4 13.6 24.0 14.0 19.0 15.0 17.0 27.0 60.0 57.0 Required: 1. In Millennium’s statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2016? (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) ($ in millions) Cash Flows From Investing Activities: Proceeds from sale of equipment $ 13.6 Acquisition of building for cash (14.0) Purchase of marketable securities (19.0) Collection of note receivable with interest 25.0 Net cash inflows (outflows) from investing activities $ 5.6 2. In Millennium’s statement of cash flows, what were net cash inflows (or outflows) from financing activities for 2016? (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) ($ in millions) Cash Flows from Financing Activities: Payment for the early extinguishment of long­term notes $ (84.0) Sale of common shares 232.0 Retirement of common shares (136.0) Issuance of short­term note payable for cash 24.0 Distribution of cash dividends declared in 2015 (57.0) Net cash inflows (outflows) from financing activities Explanation: No further explanation details are available for this problem. $ (21.0) ...
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