Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribed

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 $ 64 890 775 1,729 1,755 920 835 $2,564 $ 131 813 710 1,654 1,709 726 983 $2,637 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 $ 310 $ 205 127 642 540 1,182 185 145 97 427 850 1,277 270 1,382 $ 2,564 270 1,090 1,360 $2,637 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 Income before taxes Income taxes Net income $4,450 3,040 1,410 930 480 482 162 320 $ Burgess also provided the following information: 1. The company sold equipment that had an original cost of $62 million and accumulated depreciation of $32 million. The cash proceeds from the sale were $32 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: 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.) 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

For Mowen/hansen/heitgers Cornerstones Of Managerial Accounting, 6th Edition, [instant Access]

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

6th Edition

1305280768, 9781305280762

More Books

Students also viewed these Accounting questions

Question

=+ ^ What is the budget for this project?

Answered: 1 week ago

Question

=+What information is needed?

Answered: 1 week ago