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: Burgess

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage 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: Burgess Company Comparative Balance Sheet (dollars in millions) Ending Balance Beginning Balance Burgess Company Comparative Balance Sheet (dollars in millions) Ending Balance Beginning Balance $ 51 760 710 1,521 1,625 $ 105 696 658 1,459 1,592 687 905 $2,364 842 783 $ 2,304 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 $ $ 284 192 101 577 475 1,052 172 158 84 414 720 1,134 205 1,047 1,252 $2,304 205 1,025 1,230 $2,364 $ 4,060 780 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 378 136 242 $ Burgess also provided the following information 1. The company sold equipment that had an original cost of $36 million and accumulated depreciation of $19 million. The cash proceeds from the sale were $19 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.) Burgess Company Statement of Cash Flows Operating activities: Investing 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

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

More Books

Students also viewed these Accounting questions

Question

Perform an Internet search. Discuss a company that uses EPLI.

Answered: 1 week ago

Question

How do you feel about employment-at-will policies? Are they fair?

Answered: 1 week ago