A comparative balance sheet and an income statement for Burgess Company are given below: Burgess Company Comparative Balance Sheet (dollars in millions) Ending Beginning Balance Balance Assets Current assets: Cash and cash equivalents $ 62 $ 127 Accounts receivable 870 795 Inventory 765 702 Total current assets 1,697 1,624 1,735 908 Property, plant, and equipment Less accumulated depreciation Net property.plant and equipment 1,691 720 ces 827 971 Total assets $2,524 $2,595 183 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable $ 306 $ 203 123 147 95 632 530 425 830 Total liabilities 1,162 1255 Stockholders' equity: Common stock Retained earnings 260 1.102 260 1,080 Total stockholders out 1 362 1340 Total assets $2,524 $2,595 3 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable 1.5 $ 306 $ 203 123 183 147 95 points Total current liabilities Bonds payable 632 530 425 830 eBook Total liabilities 1,162 1,255 Print Stockholders' equity: Common stock Retained earnings 260 1,102 260 1,080 References Total stockholders' equity 1,362 1,340 Total liabilities and stockholders' equity $2,524 $ 2,595 Burgess Company Income Statement (dollars in millions) Sales Cost of goods sold $4,390 3,000 Gross margin Selling and administrative expenses 1,390 926 Net operating income Nonoperating items: Gain on sale of 464 Total stockholders' equity 1,362 1,340 3 Total liabilities and stockholders' equity $2,524 $2,595 1.5 points eBook $4,390 3,000 Burgess Company Income Statement (dollars in millions) Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Print 1,390 926 References 464 2 Income before taxes Income taxes 466 158 Net Income $ 308 Burgess also provided the following information: 1. The company sold equipment that had an original cost of $58 million and accumulated depreciation of $30 million. The cash proceeds from the sale were $30 million. The gain on the sale was $2 million. 2. The company did not issue any new bonds during the year. 3. The company paid a cash dividend during the year. 4. The company did not complete any common stock transactions during the year. Required: 1. Using the indirect math CH. 14 - STAT! 3 1.5 points Burgess also provided the following information: 1. The company sold equipment that had an original cost of $58 million and accumulated depreciation of $30 million. The cash proceeds from the sale were $30 million. The gain on the sale was $2 million. 2. The company did not issue any new bonds during the year. 3. The company paid a cash dividend during the year. 4. The company did not complete any common stock transactions during the year. Required: 1. 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.) eBook Print Burgess Company Statement of Cash Flows Operating activities: References Adjustments to convert net income to cash basis: Investing activities: Financing activities Burgess Company Statement of Cash Flows 3 Operating activities: Adjustments to convert net income to cash basis: 1.5 points eBook Print Investing activities: References Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents
