Answered: Prepare a statement of cash flows,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The comparative balance sheet of Best Buy for January 31, 2020 and 2019, is shown as follows (values are in millions):

Additional data obtained from an examination of the accounts in the ledger for 2020 are as follows:

The investments were sold for $875 million cash.
Equipment and land were acquired for cash.
There were no disposals of equipment during the year.
The common stock was bought back with cash.
There was a $89 million credit to Retained Earnings for net income.
There was a $564 million debit to Retained Earnings for cash dividends declared.

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

Best Buy
Comparative Balance Sheet
For January 31, 2020 and 2019
Sin millions
Jan 31, 2020 Jan 31, 2019
Assets
Cash
2,229 $
1,149 $
1,980
1,015
Accounts receivable
Inventory
Investments
Land
Equipment
Accumulated depreciation - Equipment
5,174 | $
5,409
500
650 $
637
9,228 $
9,200
(6,900) $
(6,690)
Total assets
$
11,530 $
12,051
Liabilities and Stockholders' Equity
Accounts payable
Accrued expenses payable (operating expenses)
Dividends payable
Common stock
5,288 $
5,257
906 | $
564 $
982
564
26 | $
27
Paid in capital: Excess of issue price over par - common stock
Retained earnings
Total liabilities and stockholders' equity
4,746 $
5,221
11,530 $
12,051

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