Burns Corporation's net income last year was $97,400. Changes in the company's balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset Accounts: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation Liability and Equity Accounts: Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings $ 18,800 $ 13,800 $ (17,600) $4,400 $ 10,900 $75,600 $ 32,900 $ (18,700) $ 17,100 $ 4,200 $ (64,200) $ 41,600 $ 93,000 The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,400. Required: a. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) (Amounts t be deducted and cash outflows should be indicated with a minus sign.) b. Prepare the investing activities section of the company's statement of cash flows for the year. (Amounts to be deducted and cash outflows should be indicated with a minus sign.) c. Prepare the financing activities section of the company's statement of cash flows for the year. (Amounts to be deducted and cash outflows should be indicated with a minus sign.)
Burns Corporation's net income last year was $97,400. Changes in the company's balance sheet accounts for the year appear below: Increases (Decreases) Asset and Contra-Asset Accounts: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation Liability and Equity Accounts: Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings $ 18,800 $ 13,800 $ (17,600) $4,400 $ 10,900 $75,600 $ 32,900 $ (18,700) $ 17,100 $ 4,200 $ (64,200) $ 41,600 $ 93,000 The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,400. Required: a. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) (Amounts t be deducted and cash outflows should be indicated with a minus sign.) b. Prepare the investing activities section of the company's statement of cash flows for the year. (Amounts to be deducted and cash outflows should be indicated with a minus sign.) c. Prepare the financing activities section of the company's statement of cash flows for the year. (Amounts to be deducted and cash outflows should be indicated with a minus sign.)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 12P
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Transcribed Image Text:Burns Corporation's net income last year was $97,400. Changes in the company's balance sheet accounts for the year appear below:
Increases (Decreases)
Asset and Contra-Asset Accounts:
Cash and cash equivalents
Accounts receivable
Inventory
Prepaid expenses
Long-term investments
Property, plant, and equipment
Accumulated depreciation
Liability and Equity Accounts:
Accounts payable
Accrued liabilities
Income taxes payable
Bonds payable
Common stock
Retained earnings
$ 18,800
$ 13,800
$ (17,600)
$ 4,400
$ 10,900
$ 75,600
$ 32,900
$ (18,700)
$ 17,100
$4,200
$ (64,200)
$ 41,600
$ 93,000
The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or
repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,400.
Required:
a. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) (Amounts to
be deducted and cash outflows should be indicated with a minus sign.)
b. Prepare the investing activities section of the company's statement of cash flows for the year. (Amounts to be deducted and cash
outflows should be indicated with a minus sign.)
c. Prepare the financing activities section of the company's statement of cash flows for the year. (Amounts to be deducted and cash
outflows should be indicated with a minus sign.)
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