Concept explainers
Prepare a Statement of
A comparative
Burgess also provided the following information:
1. The company sold equipment that had an original cost of S13 million and
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.
2. Assume that Burgess had sales of $3,800 net income of $135, and net cash provided by operating activities of $150 in the prior year (all numbers are stated in millions). Prepare a memo that summarizes your interpretations of Burgess's financial performance
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Introduction To Managerial Accounting
- Solpoder Corporation has the following comparative financial statements: Dividends of 17,100 were paid. No equipment was purchased or retired during the current year. Required: Prepare a statement of cash flows using the direct method.arrow_forwardCurwen Inc. reported net cash flow from operating activities of $357,500 on its statement of cash flows for a recent year ended December 31. The following information was reported in the Cash flows from operating activities section of the statement of cash flows, using the indirect method: Decrease in income taxes payable $ 7,700Decrease in inventories 19,140Depreciation 29,480Gain on sale of investments 13,200Increase in accounts payable 5,280Increase in prepaid expenses 2,970Increase in accounts receivable 14,300a. Determine the net income reported by Curwen Inc. for the year ended December 31.b. Briefly explain why Curwen’s net income is different from net cash flow from operating activities.arrow_forwardBurgess also provided the following information: 1. The company sold equipment for $8 million that originally cost $13 million with accumulated depreciation of $8 million. The gain on the sale was $3 million. 2. The company did not issue any new bonds, pay a dividend, or complete any common stock transactions during the year. Required: 1. Using the indirect method, prepare a statement of cash flows. Note: 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: Burgess Company Statement of Cash Flowsarrow_forward
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- A Co made a profit for the year of $18,750, after accounting for depreciation of $1,250. During the year, non-current assets were purchased for $8,000, receivables increased by $1,000, inventories decreased by $1,800 and payables increased by $350. What was A Co's increase in cash and bank balances during the year? A $10,650 В $10,850 C $12,450 $13,150arrow_forwardBrandon Inc. reported the following items in its statement of financial position and statement of earnings: net income, $81,500; gain on disposal of equipment, $14,600; increase in accounts receivable, $17,400; decrease in accounts payable, $27,900, and increase in common shares, $50,000. Required: Compute the net cash flows from operating activities using the indirect method.arrow_forwardHi-Tech, Inc., reports net income of $70 million. Included in that number are depreciation expense of $6 million and a loss on the sale of equipment of $2 million. Records reveal increases in accounts receivable, accounts payable, and inventory of $3 million, $4 million, and $5 million, respectively. What are Hi-Tech’s net cash flows from operating activities?arrow_forward
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