PROBLEM 12-12A Prepare a Statement of Cash Flows [LO12-1,LO12-2] A comparative balance sheet and an income...

  

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PROBLEM 12-12A Prepare a Statement of Cash Flows [LO12-1,LO12-2] A comparative balance sheet and an income statement for Burgess Company are given below: 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 Burgess Company Comparative Balance Sheet (dollars in millions) 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 Net sales Cost of goods sold Gross margin Selling and administrative expenses Ending Balance $ Burgess Company Income Statement (dollars in millions) Income before taxes. Income taxes Net income. Statement of Cash Flows TFT 49 645 660 1,354 1,515 765 750 $2,104 $250 190 76 516 450 966 161 977 1,138 $2,104 Net operating income Nonoperating items: Gain on sale of equipment.. Beginning Balance $ 79 580 615 1,274 1,466 641 825 $2,099 $ 155 165 70 Required: Using the indirect method, prepare a statement of cash flows for the year. 390 620 1,010 161 928 1,089 $2,099 $3,600 2,550 1,050 875 175 3 178 63 $ 115 Burgess also provided the following information: 1. The company sold equipment that had an original cost of $13 million and accumulated depreciation of $8 million. The cash proceeds from the sale were $8 million. The gain on the sale was $3 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. PROBLEM 12-12A Prepare a Statement of Cash Flows [LO12-1,LO12-2] A comparative balance sheet and an income statement for Burgess Company are given below: 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 Burgess Company Comparative Balance Sheet (dollars in millions) 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 Net sales Cost of goods sold Gross margin Selling and administrative expenses Ending Balance $ Burgess Company Income Statement (dollars in millions) Income before taxes. Income taxes Net income. Statement of Cash Flows TFT 49 645 660 1,354 1,515 765 750 $2,104 $250 190 76 516 450 966 161 977 1,138 $2,104 Net operating income Nonoperating items: Gain on sale of equipment.. Beginning Balance $ 79 580 615 1,274 1,466 641 825 $2,099 $ 155 165 70 Required: Using the indirect method, prepare a statement of cash flows for the year. 390 620 1,010 161 928 1,089 $2,099 $3,600 2,550 1,050 875 175 3 178 63 $ 115 Burgess also provided the following information: 1. The company sold equipment that had an original cost of $13 million and accumulated depreciation of $8 million. The cash proceeds from the sale were $8 million. The gain on the sale was $3 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.

Answer rating: 100% (QA)

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