A comparative balance sheet and an income statement for Burgess Company are given below: Burgess Company...

 

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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) 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: $ 4,240 2,900 1,340 916 424 2 426 148 $ 278 Ending Balance $57 820 740 1,617 1,685 878 807 $ 2,424 $296 198 113 607 505 1,112 235 1,077 1,312 $ 2,424 Beginning Balance $117 750 682 1,549 1,646 705 941 $ 2,490 $ 178 152 90 420 780 1,200 235 1,055 1,290 $ 2,490 1. The company sold equipment that had an original cost of $48 million and accumulated depreciation of $25 million. The cash proceeds from the sale were $25 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.) Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents Burgess Company Statement of Cash Flows A comparative balance sheet and an income statement for Burgess Company are given below: Burgess Company Comparative Balance Sheet (dollars in millions) 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: $ 4,240 2,900 1,340 916 424 2 426 148 $ 278 Ending Balance $57 820 740 1,617 1,685 878 807 $ 2,424 $296 198 113 607 505 1,112 235 1,077 1,312 $ 2,424 Beginning Balance $117 750 682 1,549 1,646 705 941 $ 2,490 $ 178 152 90 420 780 1,200 235 1,055 1,290 $ 2,490 1. The company sold equipment that had an original cost of $48 million and accumulated depreciation of $25 million. The cash proceeds from the sale were $25 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.) Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents Burgess Company Statement of Cash Flows

Answer rating: 100% (QA)

Burgess Company Statement of Cash Flows In millions For current year Particulars Cash Flow from Op... View the full answer