Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 13-12 Prepare a Statement of Cash Flows [LO13-1, LO13-2] A comparative balance sheet and an income statement for Burgess Company are given below: nurgens

image text in transcribed
image text in transcribed
image text in transcribed
Problem 13-12 Prepare a Statement of Cash Flows [LO13-1, LO13-2] A comparative balance sheet and an income statement for Burgess Company are given below: nurgens Company Comparative Balance Sheet (dollars in millions) Ending Balance Beginning Balance 5 43 680 670 1,393 1,545 794 751 $2,144 $ 89 624 626 1,339 1,520 663 857 $ 2, 196 Assets Current assetst Camh and cash equivalente Accounts receivable Inventory Total curtent assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total ants 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 $ 268 184 85 537 435 972 $ 164 166 76 406 640 1,046 165 1.007 1, 172 $2,144 165 985 1,150 $ 2, 196 Burgess Company Burgess Company Income Statement (dollars in mations) Sale Coat of goods sold Cras margin Selling and administrative expenses Net operating Income Nonoperating items Cain on sale of equipment Income before taxe Tncome taxes Net Income $ 3.820 2,620 1,200 BBB 312 2 120 194 3 Burgess also provided the following information: 1. The company sold equipment that had an original cost of $20 million and accumulated depreciation of $11 million. The proceeds from the sale were $11 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. equired: sing the indirect method, prepare a statement of cash flows for the year. (Enter your answers in millions not in dollars. eduction in cash and cash outflows as negative amounts.) Burgess Company Statement of Cash Flows Derating activities: t income ED Burgess Company Statement of Cash Flows Operating activities Net income 0 Investing activities 0 Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents 0

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

Step: 3

blur-text-image

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

Auditing And Assurance Services Plus Pearson MyLab Accounting With Pearson EText

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan

17th Global Edition

1292312106, 978-1292312101

More Books

Students also viewed these Accounting questions