Reconciling Changes in Balance Sheet Accounts The following table presents selected items from the Year 2 and Year 1 balance sheets and Year 2 income statement of Walgreen Company. WALGREEN CO. AND SUBSIDIARIES ($ millions) Selected Balance Sheet Data Year 2 Year 1 $6,076 $6,852 Inventories Property and Equipment, Less Accumulated Depreciation 12,257 12,138 Trade Accounts Payable Retained Earnings Selected Income Statement Data Cost of Merchandise Sold Depreciation Expense million 4,315 4,635 Net Earnings 22,229 21,523 b. Compute the net cost of property acquired in Year 2. $ million a. Compute the cash paid for merchandise inventories in Year 2. Assume that trade accounts payable is only for merchandise purchases. million $ c. Compute the cash dividends paid in Year 2. Year 2 $54,823 1,316 2,031

Reconciling Changes in Balance sheet Accounts The following table presents selected items from the Yea? 2 and Year 1 balance sheets and Year 2 uncome statement of Walgreen Company. a. Compute the cash paid for merchandise inventories in Vear 2 . Assume that trade accounts payable is only for merchandise purchases. miltion b. Compute the net cost of property acquired in Year 2. million c. Compute the cash dividends paid in Year 2