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