Preparing a Cash Flow Statement Using Comparative Balance Sheets
The Limpid Pool Company reports net income of $25 million for 2000. Balance sheets at the beginning and end of the year are shown below.
|
December 31 |
||
|
1999 |
2000 |
|
|
(Dollars in millions) |
||
|
Cash |
$ 50 |
$ 70 |
|
Other current assets |
80 |
145 |
|
Property, plant, and equipment (net) |
170 |
135 |
|
Total assets |
$300 |
$350 |
|
Current liabilities |
$20 |
$15 |
|
Noncurrent liabilities |
180 |
195 |
|
Common stock |
80 |
110 |
|
Retained earnings |
20 |
30 |
|
Total liabilities and shareholders’ equity |
$300 |
$350 |
The firm did not acquire any noncurrent assets during 2000.
Required
Determine the following amounts for 2000:
a. Dividends paid
b. Cash flow from operating activities
c. Cash flow from investing activities
d. Cash flow from financing activities