Quick Company Comparative Balance Sheet Quick Company Income Statement For the year ended December 31, 20x8 (dollars in millions) December 31, 20x8 and 20x7 (dollars in millions) Sales $4,210 20x7 20x8 Cost of goods sold Gross profit Selling and administrative expenses Net operating expenses Nonoperating expenses: 2,880 Assets: 1,330 Current assets: $56 $115 914 Cash and cash equivalents 416 Accounts receivable 810 741 735 Inventory 678 Gain on the sale of machine Income before taxes Income taxes expense 2 Total current assets 1,601 1,534 Property, plant, and equipment 1,675 418 1,637 146 Less: Accum. Depreciation 872 702 Net income Net property, plant, and equipment $272 803 935 $2,469 Total Assets 2.404 Liabilities and equity Current liabilities: Accounts payable Salaries payable $294 $177 19. 153 Icome taxes payable current liabilities Additional Information Bonds navable Foo 770 a) A $270 million bonds payable is retired at its $270 million carrying (book) value in exchange for cash. b) The only changes affecting retained earnings is net income and cash dividends paid. I 1,102 Total liabilitics 1.189 Stockholders' equity: c) Sold a machine with an original cost of $46 million and accumulated depreciation of $24 million. Received cash for the sale of $24 million, resulting in a gain of $2 million. d) Purchased machine for $84 million $194 million. Common stock 230 230 Retained earnings Total stockholders' equity 1.072 1,050 20x8. Total depreciation expense for Il assets in 20OX8 was 1.302 1,280 Total Liabilities and Stockholders' Equity $2,404 $2,469 e) Cash dividends paid in 20x8 were $250 million. TIT Required: Prepare a statement of cash flows for the year ended December 31, 20x8 using the Indirect Method (List any deducti Part 1: Calculate the amount f change each balance sheet account. Quick Company Sheet Compan and 20x7 Change in Amount Dec (dollars in millions) 20x7 20x8 Assets: Current assets: Cash and cash equivalents $56 $115 810 $0 Accounts receivable 741 $0 Inventory Total current assets 735 678 1,601 1,534 Property, plant, and equipment 1,675 1,637 872 $0 Less: Accum. Depreciation 702 Net property, plant, and equipment Total Assets 803 935 $2.404 $2,469 Liabilities and equity Current liabilities: Accounts payable Salaries payable Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity $294 $177 $0 197 $0 $0 153 111 89 607 415 500 770 1,102 1,189 Common stock 230 230 Retained earnings 1,072 $0 1,050 Total stockholders' equity 1.302 1,280 Total Liabilities and Stockholders' Equity $2.404 $2,469 Part 2: Prepare the Cashflow statement using the indirect method. Quick Company Statement of Cash Flows - Indirect Method For the year ended December 31, 20x8 (dollars in millions) Operating Activities Adjustments convert net income to a cash basis: Net cash provided by (used in) operating activities Investing Activities Net cash provided by (used in) investing activities Financing Activities Net cash provided by (used in) financing activities Net increase (decrease) in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents