Problem 15-19 (Static) Prepare a Statement of Cash Flows [LO15-1, LO15-2, LO15-3, LO15-4, LO15-5]A comparative balance sheet and an income statement for Burgess Company are given below:Burgess CompanyComparative Balance Sheet(dollars in millions)AssetsCurrent assets:Cash and cash equivalentsAccounts receivableInventoryTotal current assets.Property, plant, and equipmentLess accumulated depreciationNet property, plant, and equipment.Total assetsLiabilities and Stockholders' EquityCurrent liabilities:Accounts payableAccrued liabilitiesIncome taxes payableTotal current liabilities.Bonds payableTotal liabilitiesStockholders' equity:Common stockRetained earningsTotal stockholders' equityTotal liabilities and stockholders' equityBurgess CompanyIncome Statement(dollars in millions)SalesCost of goods soldGross marginSelling and administrative expensesNet operating incomeNonoperating items:Gain on sale of equipmentIncome before taxesIncome taxesNet income**$3,6002,5501,05087517517863$115EndingBalance$ 496456601,3541,515765750$ 2,104$250190765164509661619771,138$ 2,104BeginningBalance$ 795806151,2741,466641825$ 2,099$ 155165703906201,0101619281,089$ 2,099 Burgess 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 onthe 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 CompanyStatement of Cash Flows

Solution The cash flow statement is a financial statement which is used to calculate the cash…

Answered: Using the indirect method, prepare a…

Using the indirect method, prepare a statement of cash flows. ote: Enter your answers in millions not in dollars List any deduction in cash a

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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3.
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