5 Problem 14-12 Prepare a Statement of Cash Flows [LO14-1, LO14-2] 2 A comparative balance sheet and an income statement for Burgess Company are glven below: points Burgess Company Comparative Balance Sheet (dollars in millions) Ending Beginning Balance ook Balance Assets Current assets Print Cash and cash equivalents Accounts receivable 46 95 710 651 685 638 Inventory 1,441 1,384 Reference Total current assets Property, plant, and equipment Less accumulated depreciation Net property ,plant, and equipment 1,575 812 1,547 672 763 875 $2,204 $ 2,259 Total asets Liabilities and Stockholders Equity Current liabilities Accounts payable Accrued l1iabilities 274 167 187 163 91 79 Income taxes payable Total current 1iabilities 552 409 Bonds payable 450 670 1.002 1,079 Total liabilities Stockholders' equity Common stock 180 180 1,022 1,202 1,000 1,180 Retained earnings Total stockholders equity Total liabilities and $2,204 2,259 stockholders equity Burgess Company Income Statement (dollars in millions) Sales $3,910 2,680 1,230 Cost of goods sold Gross margin Selling and administrative expenses 894 Net operating income Nonoperating items Gain on sale of equipment 336 2 Income before taxes 338 126 Income tes 212 Net income Burgess also provided the following information: 1. The company sold equipment that had an original cost of $26 million and accumulated depreclation of $14 million. The cash proceeds from the sale were $14 million. The gain on the sale was $2 million. 2. The company did not issue any new bonds during the year 3. The company pald a cash dvidend during the year 4. The company did not complete any common stock transactions during the year LO 4. The company did not complete any common stock transactlons during the year Required: Using the indirect method, prepare a statement of cash flows for the year. (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: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents