Identifying cash flows from investing activities and financing activities
Response to the following problem:
In preparation for developing its statement of cash flows for the year ended December 31, 2016, Rapid Pac, Inc., collected the following information:
($ in millions)
Fair value of shares issued in a stock dividend $ 65
Payment for the early extinguishment of long-term bonds (book value: $97 million) 102
Proceeds from the sale of treasury stock (cost; $17 million) 22
Gain on sale of land 4
Proceeds from sale of land 12
Purchase of Microsoft common stock 160
Declaration of cash dividends 44
Distribution of cash dividends declared in 2015 40
Required:
1. In Rapid Pac's statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2016?
2. In Rapid Pac's statement of cash flows, what were net cash inflows (or outflows) from financing activities for 2016?