Use the following F/S information to answer problems 15 and 16.In its 20X1 annual report to shareholders, Heitzman & Co. provided the following Statement of Cash Flows:Years ended December 31 ($ in millions)20X120X0Operating ActivitiesCash Inflows:Cash received from customers$3,102Progress paymentsOther collections$1.43811,1487,003Proceeds from litigation settlementInterest received2201717Income tax refunds received2315Other cash receiptsCash provided by operating activitiesCash Outflows:241014,5348,483Cash paid to suppliers and employeesInterest paidIncome taxes paidOther cash paymentsCash used in operating activitiesNet cash provided by operating activities13.2517,2503331651265717,47313,7178171,010Investing ActivitiesPayment for businesses purchased, net of cash acquiredAdditions to property, plant, and equipment(3,061)(393)(510)(274)Collection of note receivable148Proceeds from sale of property, plant, and equipmentProceeds from sale of businesses864418668Other investing activitiesNet cash used in investing activities(2)(3.204)(6)(78)Financing ActivitiesProceeds from issuance of long-term debtProceeds from equity security unitsBorrowings under lines of creditRepayment of borrowings under lines of creditPrincipal payments of long-term debt/lease agreementsProceeds from issuance of stock1,4916901,173(1,306)(119)(175)(485)82519Dividends paidOther financing activitiesNet cash provided by (used in) financing activities(158)(64)(114)2,532(755)Increase in cash and cash equivalentsCash and cash equivalents at beginning of yearCash and cash equivalents at end of year145177319142$464$31915) What method does Heitzman & Co. use to present its Statement of Cash Flows?a) Indirect method.b) Direct method.c) Modified accrual method.d) None of the above.16) Which of the three cash flow activities contributed most to Heitzman & Co. having a POSITIVEincrease in cash and cash equivalents over the 20X1 period?a) Operating activities.b) Investing activities.c) Financing activities.d) The F/S above does not allow for this type of analysis.

Answered: Image /qna-images/answer/bd6e6dd6-8e19-4794-8806-a1ec26979bb7.jpg

15) What method does Heitzman & Co. use to present its Statement of Cash Flows? a) Indirect method. b) Direct method. c) Modified accrual method. d) None of the above. 16) Which of the three cash flow activities contributed most to Heitzman & Co. having a POSITIVE increase in cash and cash equivalents over the 20X1 period? a) Operating activities. b) Investing activities. c) Financing activities

15) What method does Heitzman & Co. use to present its Statement of Cash Flows? a) Indirect method. b) Direct method. c) Modified accrual method. d) None of the above. 16) Which of the three cash flow activities contributed most to Heitzman & Co. having a POSITIVE increase in cash and cash equivalents over the 20X1 period? a) Operating activities. b) Investing activities. c) Financing activities

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 32BE

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