The following information is available from Gray Co.\'s accounting records for t
ID: 2529451 • Letter: T
Question
The following information is available from Gray Co.'s accounting records for the year ended December 31, 2016 (amounts in millions):
Required:
a. The net cash provided by operating activities for Gray Co. for the year ended December 31, 2016, is $1,800 million. Calculate the cash paid to suppliers and employees. (Enter your answer in millions. (i.e., 5,000,000 should be entered as 5))
Cash dividends declared and paid $ 525 Retirement of bonds payable at maturity 300 Interest and taxes paid 220 Proceeds of common stock issued 825 Proceeds from the sale of land 250 Collections from customers 4,720 Cash paid to suppliers and employees ? Purchase of buildings and equipment ?Explanation / Answer
Solution a:
Net cash provided by operating activities = $1,800 million
Net Cash provided by operating activities = Collections from customers - Cash paid to suppliers and employees - Interest and taxes paid
$4,720 - Cash paid to suppliers and employees - $220 = $1,800
Cash paid to suppliers and employees = $2,700
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