Cash flows from operating, investing, and financing activities—direct method The following information is available from Gray Co.’s accounting records for the year ended December 31, 2010 (amounts in millions):
|
Cash dividends declared and paid. |
$ 350 |
|
Retirement of bonds payable at maturity |
200 |
|
Interest and taxes paid |
150 |
|
Proceeds of common stock issued |
550 |
|
Proceeds from the sale of land |
125 |
|
Collections from customers |
3,175 |
|
Cash paid to suppliers and employees |
? |
|
Purchase of buildings and equipment |
? |
Required:
a. The net cash provided by operating activities for Gray Co. for the year ended December 31, 2010, is $1,225 million. Calculate the cash paid to suppliers and employees.
b. The increase in cash for the year was $250 million. Calculate the amount of cash used to purchase buildings and equipment. Your answer to part a should be considered in your calculation.