Q1. A merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:

During the year, it sold a piece of equipment for $3000 that had originally cost $6000 and had accumulated depreciation of $4000. It reports net income of $2000 and paid dividends in the year. The company did not retire any bonds or repurchase any of its own common stock during the year. Prepare Statement Of Cash Flows.

Q2.

Using the indirect method, prepare a statement of cash flows for the year( enter your answer in millions not in dollars. List any deduction in cash and cash outflows as negative amounts.)

Burgess Company Comparative Baiance Sheet (dollars in millions) Burgess Company Burgess also provided the following information: 1. The company soid equipment that had an onginal cost of $38 million and accumulated depreciation of $20 million. The cash proceeds from the sale were $20 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