Unformatted text preview: 1. Award: 26.66 out of 33.33 points In preparation for developing its statement of cash flows for the year ended December 31, 2016, Rapid Pac,
Inc., collected the following information: Fair value of shares issued in a stock dividend Payment for the early extinguishment of longterm bonds (book value: $79.0 million) Proceeds from the sale of treasury stock (cost: $15.0 million) Gain on sale of land Proceeds from sale of land Purchase of Microsoft common stock Declaration of cash dividends Distribution of cash dividends declared in 2015 ($ in millions)
$ 60.0 84.0 20.0 2.4 7.2 138.0 49.0 45.0 Required:
1. In Rapid Pac’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:
Gain on sale of land $ Purchase of Microsoft common stock Net cash inflows (outflows) from investing activities 2.4
(138.0) $ (135.6) *Red text indicates no response was expected in a cell or a formulabased calculation is incorrect; no points deducted. 2. In Rapid Pac’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:
Proceeds from the sale of treasury stock $ 20.0 Payment for the early extinguishment of longterm bonds (84.0) Distribution of cash dividends declared in 2015 (45.0) $ Net cash inflows (outflows) from financing activities (109.0) 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, Rapid Pac,
Inc., collected the following information: Fair value of shares issued in a stock dividend Payment for the early extinguishment of longterm bonds (book value: $79.0 million) Proceeds from the sale of treasury stock (cost: $15.0 million) Gain on sale of land Proceeds from sale of land Purchase of Microsoft common stock Declaration of cash dividends Distribution of cash dividends declared in 2015 ($ in millions)
$ 60.0 84.0 20.0 2.4 7.2 138.0 49.0 45.0 Required:
1. In Rapid Pac’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 land $ Purchase of Microsoft common stock 7.2
(138.0) $ Net cash inflows (outflows) from investing activities (130.8) 2. In Rapid Pac’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 bonds $ (84.0) Proceeds from the sale of treasury stock 20.0 Distribution of cash dividends declared in 2015 (45.0) Net cash inflows (outflows) from financing activities Explanation:
No further explanation details are available for this problem. $ (109.0) ...
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