FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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:
$ 4,180
2,860
1,320
912
408
2
410
144
$ 266
Ending
Balance
$ 55
800
730
1,585
1,665
866
799
$ 2,384
$ 292
196
109
597
495
1,092
225
1,067
1,292
$ 2,384
Beginning
Balance
$ 113
732
674
1,519
1,628
699
929
$ 2,448
$ 176
154
88
418
760
1,178
225
1,045
1,270
$ 2,448
1. The company sold equipment that had an original cost of $44 million and accumulated depreciation of $23 million. The cash
proceeds from the sale were $23 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:
1. 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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Transcribed Image Text: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: $ 4,180 2,860 1,320 912 408 2 410 144 $ 266 Ending Balance $ 55 800 730 1,585 1,665 866 799 $ 2,384 $ 292 196 109 597 495 1,092 225 1,067 1,292 $ 2,384 Beginning Balance $ 113 732 674 1,519 1,628 699 929 $ 2,448 $ 176 154 88 418 760 1,178 225 1,045 1,270 $ 2,448 1. The company sold equipment that had an original cost of $44 million and accumulated depreciation of $23 million. The cash proceeds from the sale were $23 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: 1. 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
GA
0
0
0
0
0
0
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Transcribed Image Text:Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents Burgess Company Statement of Cash Flows GA 0 0 0 0 0 0
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