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A comparative balance sheet and an income statement for Burgess Company are given below: Burgess Company Comparative Balance Sheet (dollars in millions) Ending Balance Beginning
A comparative balance sheet and an income statement for Burgess Company are given below:
Burgess Company Comparative Balance Sheet (dollars in millions) | ||
Ending Balance | Beginning Balance | |
---|---|---|
Assets | ||
Current assets: | ||
Cash and cash equivalents | $ 68 | $ 139 |
Accounts receivable | 930 | 849 |
Inventory | 795 | 726 |
Total current assets | 1,793 | 1,714 |
Property, plant, and equipment | 1,795 | 1,745 |
Less accumulated depreciation | 944 | 738 |
Net property,plant, and equipment | 851 | 1,007 |
Total assets | $ 2,644 | $ 2,721 |
Liabilities and Stockholders' Equity | ||
Current liabilities: | ||
Accounts payable | $ 318 | $ 189 |
Accrued liabilities | 209 | 141 |
Income taxes payable | 135 | 101 |
Total current liabilities | 662 | 431 |
Bonds payable | 560 | 890 |
Total liabilities | 1,222 | 1,321 |
Stockholders' equity: | ||
Common stock | 290 | 290 |
Retained earnings | 1,132 | 1,110 |
Total stockholders' equity | 1,422 | 1,400 |
Total liabilities and stockholders' equity | $ 2,644 | $ 2,721 |
Burgess Company Income Statement (dollars in millions) | |
Sales | $ 4,570 |
---|---|
Cost of goods sold | 3,120 |
Gross margin | 1,450 |
Selling and administrative expenses | 938 |
Net operating income | 512 |
Nonoperating items: | |
Gain on sale of equipment | 2 |
Income before taxes | 514 |
Income taxes | 170 |
Net income | $ 344 |
Burgess also provided the following information:
The company sold equipment that had an original cost of $70 million and accumulated depreciation of $36 million. The cash proceeds from the sale were $36 million. The gain on the sale was $2 million.
The company did not issue any new bonds during the year.
The company paid a cash dividend during the year.
The company did not complete any common stock transactions during the year.
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