A comparative balance sheet and an income statement for Burgess Company are given below: Burgess Company Comparative
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Question:
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
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 $ $
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 $
Burgess also provided the following information:
The company sold equipment that had an original cost of $ million and accumulated depreciation of $ million. The cash proceeds from the sale were $ million. The gain on the sale was $ million.
The company did not issue any new bonds during the year.
The company paid a cash dividend during the year.
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.
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