Reference no: EM132643275

Question - The chief accountant for Grandview Corporation provides you with the company's 2021 statement of cash flows and income statement. The accountant has asked for your help with some missing figures in the company's comparative balance sheets. These financial statements are shown next ($ in millions).

GRANDVIEW CORPORATION Statement of Cash Flows

For the Year Ended December 31, 2021Cash Flows from Operating Activities: Collections from customers $84

Payment to suppliers (35)

Payment of general & administrative expenses (21)

Payment of income taxes (12)

Net cash flows from operating activities

$16 Cash Flows from Investing Activities:

Sale of investments 68

Cash Flows from Financing Activities:

Issuance of common stock 13

Payment of dividends (8)

Net cash flows from financing activities 5

Net increase in cash $89

GRANDVIEW CORPORATION

Income Statement

For the Year Ended December 31, 2021

Sales revenue $92

Cost of goods sold 35

Gross profit 57

Operating expenses:

General and administrative expense $21

Depreciation expense 13

Total operating expenses

34 Operating income

23 Other income:

Gain on sale of investments 12

Income before income taxes 35

Income tax expense 8

Net income $27

Required -

1. Calculate the missing amounts.

2. Prepare the operating activities section of Grandview's 2021 statement of cash flows using the indirect method.