In Preparation for Developing Its Statement of Cash Flows for the Year

question 141

Essay

In preparation for developing its statement of cash flows for the year just ended, D-Rose Distributors collected the following information: $$\begin{array} { | l | l | } \hline & \begin{array} { l } \text { \$ in } \\\text { millions) }\end{array} \\\hline \text { Purchase of treasury bills (considered a cash equivalent) } & 6 \\\hline \text { Sale of preferred stock } & 150 \\\hline \text { Gain on sale of land } & 4 \\\hline \text { Proceeds from sale of land } & 25 \\\hline \text { Issuance of bonds payable for cash } & 140 \\\hline \text { Purchase of equipment for cash } & 30 \\\hline \text { Purchase of GE stock } & 35 \\\hline \text { Declaration of cash dividends } & 134 \\\hline \text { Payment of cash dividends declared in previous year } & 130 \\\hline \text { Purchase of treasury stock } & 120 \\\hline \text { Payment for the early extinguishment of long-term notes (carrying (book) } & \\\text { value: \$100 million) } & 110 \\\hline\end{array}$$ Required:
1. Prepare the investing activities section of D-Rose's statement of cash flows.
2. Prepare the financing activities section of D-Rose's statement of cash flows.

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Definitions:

Osmosis

The movement of water molecules through a semipermeable membrane from a region of lower solute concentration to one of higher solute concentration to balance the concentrations on both sides of the membrane.

Particle Concentration

Particle concentration is a measure of the number of particles in a given volume of liquid or air, important in various scientific and industrial applications to assess purity or contamination levels.

Hydrolysis

A chemical reaction in which water breaks down another compound, often splitting it into two or more substances.

Full Compensation

The financial reimbursement or payment made to cover all losses or damages incurred, restoring the affected party to their original state.