Larissa has also provided the following information. During the year, the company raised
$40 million in new long-term debt and retired $22.8 million in long-term debt. The company also
sold $30 million in new stock and repurchased $36 million. The company purchased $60 million in
fi xed assets, and sold $6,786,000 in fi xed assets.
Larissa has asked Dan to prepare the fi nancial statement of cash fl ows and the accounting statement
of cash fl ows. She has also asked you to answer the following questions:
1. How would you describe East Coast Yachts’ cash fl ows?
2. Which cash fl ows statement more accurately describes the cash fl ows at the company?
3. In light of your previous answers, comment on Larissa’s expansion plans.