In preparation for developing its statement of cash flows for the year just ended, D-Rose Distributors collected the following information: ($ in millions) Purchase of treasury bills (considered a cash equivalent) 7.1 Sale of preferred stock 151.1 Gain on sale of land 5.1 Proceeds from sale of land 26.1 Issuance of bonds payable for cash 141.1 Purchase of equipment for cash 31.1 Purchase of GE stock 36.1 Declaration of cash dividends 135.1 Payment of cash dividends declared in previous year 131.1 Purchase of treasury stock 121.1 Payment for the early extinguishment of long-term notes (carrying (book) value: $100 million) 111.1 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. (For all requirements, list any cash outflow with a minus sign. Enter your answer in millions rounded to 1 decimal place (i. e., 5,500,000 should be entered as 5.5).)

D-Rose Distributors

1. Investing Activities Section of D-Rose's Statement of Cash Flows:

                                                                                     $ in millions)

Purchase of treasury bills (considered a cash equivalent) -7.1

Proceeds from sale of land                                                 26.1

Purchase of equipment for cash                                        -31.1

Purchase of GE stock                                                         -36.1

Net cash flows from investing activities                         -$48.2

2. Financing Activities Section of D-Rose's Statement of Cash Flows:

                                                                                     $ in millions)

Sale of preferred stock                                                        151.1

Issuance of bonds payable for cash                                   141.1  

Payment of cash dividends declared in previous year     -131.1

Purchase of treasury stock                                                -121.1  

Payment for the early extinguishment of long-term

notes (carrying (book) value: $100 million)                       -111.1

Net cash flows from financing activities                          -$71.1

Explanation:

a) Data and Calculations:

($ in millions)

Purchase of treasury bills (considered a cash equivalent) 7.1

Sale of preferred stock 151.1

Gain on sale of land 5.1

Proceeds from sale of land 26.1

Issuance of bonds payable for cash 141.1

Purchase of equipment for cash 31.1

Purchase of GE stock 36.1

Declaration of cash dividends 135.1

Payment of cash dividends declared in previous year 131.1

Purchase of treasury stock 121.1

Payment for the early extinguishment of long-term notes (carrying (book) value: $100 million) 111.1

b) In preparing D-Rose's Statement of Cash Flows, the following two items are non-cash items:  

i) The gain on sale of land, which will be deducted from the Net Income when the indirect method is used for preparing the operating activities section.

ii) The declaration of cash dividends does not involve any cash flow. It is the payment of dividends that involves a financing activity.

answer; standing committee;

answer; ///hong kong;