1 0 points) Skipped Problem 15-19 (Static) Prepare a Statement of Cash Flows [LO15-1, LO15-2, LO15-3, LO15-4, LO15-5] A comparative balance sheet and an income statement for Burgess Company are given below: Burgess Company Comparative Balance Sheet (dollars in millions) eBook References Assets Current assets: Cash and cash equivalents: Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation: Net property, plant, and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities: Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Buroess Comoanv Ending Balance Beginning Balance $49 $79 645 580 660 615 1,354 1,274 1,515 1,466 765 641 750 825 $ 2,104 $ 2,099 $250 190 $155 1651 76 70 516 390 450 620 966 1,010 161 161) 977 1,138 $ 2,104 928 1,089 $ 2,099 1 ints Skipped Sales Cost of goods sold Gross margin Burgess Company Income Statement (dollars in millions) Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes Income taxes Net income eBook Burgess also provided the following information: $3,600 2,550 1,050 875 175 3 178 63 $115 References 1. The company sold equipment for $8 million that originally cost $13 million with accumulated epreciation of $8 million. The gain on the sale was $3 million. 2. The company did not issue any new bonds, pay a dividend, or complete any common stock transactions during the year. Required: 1. Using the indirect method, prepare a statement of cash flows. Note: Enter your answers in millions not in dollars. List any deduction in cash and cash outflows as negative amounts. Burgess Company Operating activities: Net income Gain on sale of equipment Depreciation Statement of Cash Flows $ (3) 132 $ 115 Week 7 Problem Income taxes Net income 1 Burgess also provided the following information: 63 $115 Saved 10 pos Skipped eBook References 1. The company sold equipment for $8 million that originally cost $13 million with accumulated depreciation of $8 million. The gain on the sale was $3 million. 2. The company did not issue any new bonds, pay a dividend, or complete any common stock transactions during the year. Required: 1. Using the indirect method, prepare a statement of cash flows. Note: Enter your answers in millions not in dollars. List any deduction in cash and cash outflows as negative amounts. Burgess Company Statement of Cash Flows Operating activities: Net income Gain on sale of equipment Depreciation Increase in accounts receivable Increase in inventory Increase in accounts payable Increase in accrued liabilities Increase in income taxes payable Net cash provided by operating activities Investing activities: S 115 $ (3) 132 (65) (45) 95 25 6 145 260 Help Save Problem Operaung activites: Net income 1 Gain on sale of equipment Depreciation Increase in accounts receivable 10 Increase in inventory points Increase in accounts payable Skipped Increase in accrued liabilities Increase in income taxes payable eBook References Net cash provided by operating activities Investing activities: Saved $ 115 $ (3) 132 (65) (45) 95 25 6 145 260 Gain on sale of equipment 8 Cash dividends paid (62) Net cash used in investing activities (54) Financing activities: Retirement of bonds payable (170) Cash dividends paid (66) Net cash provided by financing activities (236) Net decrease in cash and cash equivalents (30) Beginning cash and cash equivalents 79 Ending cash and cash equivalents $ 49