A comparative balance sheet and an income statement for Burgess Company are given below: Burgess Company Comparative Balance Sheet (dollars in millions) Ending Balance Beginning Balance Assets Current assets: Cash and cash equivalents $ 55 $ 113 Accounts receivable 800 732 Inventory 730 674 Total current assets 1,585 1,519 Property, plant, and equipment 1,665 1,628 Less accumulated depreciation 866 699 Net property,plant, and equipment 799 929 Total assets $ 2,384 $ 2,448 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 292 $ 176 Accrued liabilities 196 154 Income taxes payable 109 88 Total current liabilities 597 418 Bonds payable 495 760 Total liabilities 1,092 1,178 Stockholders' equity: Common stock 225 225 Retained earnings 1,067 1,045 Total stockholders' equity 1,292 1,270 Total liabilities and stockholders' equity $ 2,384 $ 2,448 Burgess Company Income Statement (dollars in millions) Sales $ 4,180 Cost of goods sold 2,860 Gross margin 1,320 Selling and administrative expenses 912 Net operating income 408 Nonoperating items: Gain on sale of equipment 2 Income before taxes 410 Income taxes 144 Net income $ 266 Burgess also provided the following information: 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. The company did not issue any new bonds during the year. The company paid a cash dividend during the year. The company did not complete any common stock transactions during the year. Required: Using the indirect method, prepare a statement of cash flows for the year. Please enter in millions not in dollars.
A comparative balance sheet and an income statement for Burgess Company are given below: Burgess Company Comparative Balance Sheet (dollars in millions) Ending Balance Beginning Balance Assets Current assets: Cash and cash equivalents $ 55 $ 113 Accounts receivable 800 732 Inventory 730 674 Total current assets 1,585 1,519 Property, plant, and equipment 1,665 1,628 Less accumulated depreciation 866 699 Net property,plant, and equipment 799 929 Total assets $ 2,384 $ 2,448 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 292 $ 176 Accrued liabilities 196 154 Income taxes payable 109 88 Total current liabilities 597 418 Bonds payable 495 760 Total liabilities 1,092 1,178 Stockholders' equity: Common stock 225 225 Retained earnings 1,067 1,045 Total stockholders' equity 1,292 1,270 Total liabilities and stockholders' equity $ 2,384 $ 2,448 Burgess Company Income Statement (dollars in millions) Sales $ 4,180 Cost of goods sold 2,860 Gross margin 1,320 Selling and administrative expenses 912 Net operating income 408 Nonoperating items: Gain on sale of equipment 2 Income before taxes 410 Income taxes 144 Net income $ 266 Burgess also provided the following information: 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. The company did not issue any new bonds during the year. The company paid a cash dividend during the year. The company did not complete any common stock transactions during the year. Required: Using the indirect method, prepare a statement of cash flows for the year. Please enter in millions not in dollars.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A comparative
Burgess Company Comparative Balance Sheet (dollars in millions) |
||
Ending Balance | Beginning Balance | |
---|---|---|
Assets | ||
Current assets: | ||
Cash and cash equivalents | $ 55 | $ 113 |
800 | 732 | |
Inventory | 730 | 674 |
Total current assets | 1,585 | 1,519 |
Property, plant, and equipment | 1,665 | 1,628 |
Less |
866 | 699 |
Net property,plant, and equipment | 799 | 929 |
Total assets | $ 2,384 | $ 2,448 |
Liabilities and |
||
Current liabilities: | ||
Accounts payable | $ 292 | $ 176 |
Accrued liabilities | 196 | 154 |
Income taxes payable | 109 | 88 |
Total current liabilities | 597 | 418 |
Bonds payable | 495 | 760 |
Total liabilities | 1,092 | 1,178 |
Stockholders' equity: | ||
Common stock | 225 | 225 |
1,067 | 1,045 | |
Total stockholders' equity | 1,292 | 1,270 |
Total liabilities and stockholders' equity | $ 2,384 | $ 2,448 |
Burgess Company Income Statement (dollars in millions) |
|
Sales | $ 4,180 |
---|---|
Cost of goods sold | 2,860 |
Gross margin | 1,320 |
Selling and administrative expenses | 912 |
Net operating income | 408 |
Nonoperating items: | |
Gain on sale of equipment | 2 |
Income before taxes | 410 |
Income taxes | 144 |
Net income | $ 266 |
Burgess also provided the following information:
- 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.
-
The company did not issue any new bonds during the year.
-
The company paid a cash dividend during the year.
-
The company did not complete any common stock transactions during the year.
Required:
Using the indirect method, prepare a statement of
Please enter in millions not in dollars.
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