(This is AFTER both screenshots)Accounts receivable Inventories Accounts payable Other current liabilities Increase (decrease) in deferred taxes Total adjustments Net cash provided from (used by) operating activities Cash Flows from Investing Activities Proceeds from sale of facilities or equipment Capital expenditures Net cash used by investing activities Cash Flows from Financing Activities Proceeds from issuance of long-term debt Repayments of long-term debt Dividends paid Net cash provided from (used by) financing activities Net Increase (Decrease) in Cash Cash - Beginning of Year Cash - End of Year$ Stockholders' equity:Common stock$ 3.3$ 3.3Additional paid-in capital28.928.9Retained earnings24.830.5Total stockholders' equity$57.0$62.7Total liabilities and stockholders' equity$91.2$113.8*Net income for the year ended December 31, Year 2, totaled $9.2 million; dividends paid during the sameperiod totaled $3.5 million; $1.6 million of long-term debt was retired in Year 2; and fixed assets were soldduring Year 2 for $0.9 million.Prepare a statement of cash flows (using the indirect method) for the Midland Manufacturing Corporation for the year ending December Year 2, based on thecomparative balance sheets shown above. Use minus sign to indicate cash outflows. Enter your answers in millions. For example, an answer of $1.2 millionshould be entered as 1.2, not 1,200,000. Round your answers to one decimal place.Midland Manufacturing CorporationStatement of Cash Flows For the Year Ended December 31, Year 2($ millions)Cash Flows from Operating Activities:Net Income2$Adjustments to reconcile net income to net cash providedfrom operating activitiesDepreciation(Increase) decrease in current assets or liabilities Consider the following comparative balance sheets for the Midland Manufacturing Corporation.Midland Manufacturing CorporationComparative Balance Sheets (in Millions of Dollars)*December 31,December 31,Year 1Year 2AssetsCurrent assets:Cash$ 5.0$ 0.6Accounts receivable, net7.48.0Inventories14.514.7Total current assets$26.9$23.3Property and equipment$80.4$115.5Less: Accumulated depreciation16.125.0Net property and equipment$64.390.5Total assets$91.2$113.8Liabilities and Stockholder's EquityCurrent liabilities:Accounts payable$ 7.8$ 9.5Other current liabilities6.38.8Total current liabilities$14.1$18.3Long-term debt19.031.5Deferred federal income taxes$1.1$1.3Stockholders' equity:

Cash flow statement tells the sources of cash and where the cash is being used. It evaluated various…

Answered: Midland Manufacturing Corporation…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 3BE

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(This is AFTER both screenshots)

Accounts receivable
Inventories
Accounts payable
Other current liabilities
Increase (decrease) in deferred taxes
Total adjustments
Net cash provided from (used by) operating activities

Cash Flows from Investing Activities
Proceeds from sale of facilities or equipment
Capital expenditures
Net cash used by investing activities

Cash Flows from Financing Activities
Proceeds from issuance of long-term debt
Repayments of long-term debt
Dividends paid
Net cash provided from (used by) financing activities

Net Increase (Decrease) in Cash
Cash - Beginning of Year
Cash - End of Year	$

Stockholders' equity:
Common stock
$ 3.3
$ 3.3
Additional paid-in capital
28.9
28.9
Retained earnings
24.8
30.5
Total stockholders' equity
$57.0
$62.7
Total liabilities and stockholders' equity
$91.2
$113.8
*Net income for the year ended December 31, Year 2, totaled $9.2 million; dividends paid during the same
period totaled $3.5 million; $1.6 million of long-term debt was retired in Year 2; and fixed assets were sold
during Year 2 for $0.9 million.
Prepare a statement of cash flows (using the indirect method) for the Midland Manufacturing Corporation for the year ending December Year 2, based on the
comparative balance sheets shown above. Use minus sign to indicate cash outflows. Enter your answers in millions. For example, an answer of $1.2 million
should be entered as 1.2, not 1,200,000. Round your answers to one decimal place.
Midland Manufacturing Corporation
Statement of Cash Flows For the Year Ended December 31, Year 2
($ millions)
Cash Flows from Operating Activities:
Net Income
2$
Adjustments to reconcile net income to net cash provided
from operating activities
Depreciation
(Increase) decrease in current assets or liabilities

Consider the following comparative balance sheets for the Midland Manufacturing Corporation.
Midland Manufacturing Corporation
Comparative Balance Sheets (in Millions of Dollars)*
December 31,
December 31,
Year 1
Year 2
Assets
Current assets:
Cash
$ 5.0
$ 0.6
Accounts receivable, net
7.4
8.0
Inventories
14.5
14.7
Total current assets
$26.9
$23.3
Property and equipment
$80.4
$115.5
Less: Accumulated depreciation
16.1
25.0
Net property and equipment
$64.3
90.5
Total assets
$91.2
$113.8
Liabilities and Stockholder's Equity
Current liabilities:
Accounts payable
$ 7.8
$ 9.5
Other current liabilities
6.3
8.8
Total current liabilities
$14.1
$18.3
Long-term debt
19.0
31.5
Deferred federal income taxes
$1.1
$1.3
Stockholders' equity:

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