Problem 13-12 Prepare a Statement of Cash Flows [LO13-1, LO13-2]
A comparative balance sheet and an income statement for Burgess Company are given below:
Burgess Company Comparative Balance Sheet (dollars in millions) |
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Ending Balance | Beginning Balance | ||||
Assets | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 48 | $ | 99 | |
Accounts receivable | 730 | 669 | |||
Inventory | 695 | 646 | |||
Total current assets | 1,473 | 1,414 | |||
Property, plant, and equipment | 1,595 | 1,565 | |||
Less accumulated depreciation | 824 | 678 | |||
Net property, plant, and equipment | 771 | 887 | |||
Total assets | $ | 2,244 | $ | 2,301 | |
Liabilities and Stockholders' Equity | |||||
Current liabilities: | |||||
Accounts payable | $ | 278 | $ | 169 | |
Accrued liabilities | 189 | 161 | |||
Income taxes payable | 95 | 81 | |||
Total current liabilities | 562 | 411 | |||
Bonds payable | 460 | 690 | |||
Total liabilities | 1,022 | 1,101 | |||
Stockholders' equity: | |||||
Common stock | 190 | 190 | |||
Retained earnings | 1,032 | 1,010 | |||
Total stockholders' equity | 1,222 | 1,200 | |||
Total liabilities and stockholders' equity | $ | 2,244 | $ | 2,301 | |
Burgess Company Income Statement (dollars in millions) |
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Sales | $ | 3,970 |
Cost of goods sold | 2,720 | |
Gross margin | 1,250 | |
Selling and administrative expenses | 898 | |
Net operating income | 352 | |
Nonoperating items: | ||
Gain on sale of equipment | 2 | |
Income before taxes | 354 | |
Income taxes | 130 | |
Net income | $ | 224 |
Burgess also provided the following information:
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. (Enter your answers in millions not in dollars. List any deduction in cash and cash outflows as negative amounts.)
Cash Flow Statement | ||||
Indirect Method | ||||
Cash flow from Operating Activities | ||||
Net Income | $ 224.00 | |||
Adjustments | ||||
Depreciation | $ 162.00 | =824-(678-16) | ||
Gain on sale of equipment | $ -2.00 | |||
Change In current assets & Liabilities | ||||
Increase in Accounts Receivable | $ -61.00 | =669-730 | ||
Increase in inventories | $ -49.00 | =646-695 | ||
Increase in Accounts payable | $ 109.00 | =278-169 | ||
Increase in Accrued Liabilities | $ 28.00 | =189-161 | ||
Increase in Income Tax Payable | $ 14.00 | =95-81 | ||
Total Adjustments | $ 201.00 | |||
Cash from operating activities | $ 425.00 | |||
Cash flow from Investing Activities | ||||
Cash paid for Purchase of Equipment | $ -60.00 | =1565-30-1595 | ||
Sale of Equipment | $ 16.00 | |||
Cash used in investing activities | $ -44.00 | |||
Cash flow from Financing Activities | ||||
Repayment of Bonds Payable | $ -230.00 | =460-690 | ||
Dividend Paid | $ -202.00 | =-(1010+224-1032) | ||
Cash from financing activities | $ -432.00 | |||
Net Increase in cash | $ -51.00 | |||
Opening Balance of Cash | $ 99.00 | |||
Closing Balance of Cash | $ 48.00 |
Problem 13-12 Prepare a Statement of Cash Flows [LO13-1, LO13-2] A comparative balance sheet and an...
Problem 13-12 Prepare a Statement of Cash Flows [LO13-1, LO13-2] 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 $ 52 $ 107 Accounts receivable 770 705 Inventory 715 662 Total current assets 1,537 1,474 Property, plant, and equipment 1,635 1,601 Less accumulated depreciation 848 690 Net property, plant, and equipment 787 911 Total assets $...
Durycoo Cupurty Comparative Balance Sheet (dollars in millions) Ending Balance Beginning Balance $ 99 669 $ 48 730 695 1,473 1,595 - 824 771 $2,244 1,414 1,565 678 887 $ 2,301 Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity:...
5 Problem 14-12 Prepare a Statement of Cash Flows [LO14-1, LO14-2] 2 A comparative balance sheet and an income statement for Burgess Company are glven below: points Burgess Company Comparative Balance Sheet (dollars in millions) Ending Beginning Balance еВook Balance Assets Current assets Print Cash and cash equivalents Accounts receivable 46 95 710 651 685 638 Inventory 1,441 1,384 Reference Total current assets Property, plant, and equipment Less accumulated depreciation Net property ,plant, and equipment 1,575 812 1,547 672 763...
A comparative balance sheet and an income statement for Burgess Company are given below: Burgess Company Comparative Balance Sheet (dollars in millions) Ending Beginning Balance Balance $ $ 141 858 69 940 800 1,809 1,805 950 855 $2.664 730 1,729 1,754 741 1,013 $2.742 Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued...
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 $ 54 $ 111 Accounts receivable 790 723 Inventory 725 670 Total current assets 1,569 1,504 Property, plant, and equipment 1,655 1,619 Less accumulated depreciation 860 696 Net property, plant, and equipment 795 923 Total assets $ 2,364 $ 2,427 Liabilities and Stockholders' Equity Current liabilities: Accounts...
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 $ 46 $ 95 Accounts receivable 710 651 Inventory 685 638 Total current assets 1,441 1,384 Property, plant, and equipment 1,575 1,547 Less accumulated depreciation 812 672 Net property, plant, and equipment 763 875 Total assets $ 2,204 $ 2,259 Liabilities and Stockholders' Equity Current liabilities: Accounts...
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 $ $ 41 660 660 1,361 1,525 782 743 85 606 618 1,309 1,502 657 845 $2,104 $ 2,154 Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable...
A comparative balance sheet and an income statement for Burgess Company are given below: Burgess Company Comparative Balance Sheet (dollars in millions) Ending Beginning Balance Balance Assets Current assets: Cash and cash equivalents $ 52 $ 107 Accounts receivable 770 705 Inventory 715 662 Total current assets 1,537 1,474 Property, plant, and equipment 1,635 1,601 Less accumulated depreciation 848 690 Net property, plant, and 787 911 equipment Total assets $2,324 $2,385 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $...
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 $ 56 810 735 601 $ 115 741 678 1,534 1,637 702 935 $ 2,469 675 803 $ 2,404 Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable...
A comparative balance sheet and an income statement for Burgess Company are given below: Burgess Company Comparative Balance Sheet (dollars in millions) Ending Beginning Balance Balance Assets Current assets Cash and cash equivalents Accounts receivable Inventory $ $ 40 650 655 83 597 614 Total current assets 1.345 1.294 Property, plant, and equipment Less accumulated depreciation 1.515 776 1.493 654 Net property.plant, and equipment 739839 Total assets $ 2,084 S 2.133 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued...