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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 $ 47 720 690 1,457 1,585 818 767 $ 2,224 $ 97 660 642 1,399 1,556 675 881 $ 2,280 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 $ 276 188 93 557 455 1,012 $ 168 162 80 410 680 1,090 185 1,027 1,212 $ 2,224 185 1,005 1.190 $ 2,280 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 $ 3,940 2,700 1,240 896 344 2 346 128 1,240 896 344 Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes Income taxes Net income 2 346 128 $ 218 Burgess also provided the following information: 1. The company sold equipment that had an original cost of $28 million and accumulated depreciation of $15 million. The cash proceeds from the sale were $15 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 a deduction in cash and cash outflows as negative amounts.) Burgess Company Statement of Cash Flows Operating activities 0 0 Burgess Company Statement of Cash Flows Operating activities: 0 0 Investing activities: Financing activities: 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0
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