Question

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 Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ $ 294 197 111 602 500 1,102 177 153 89 419 770 1,189 230 1,072 1, 302 $ 2,404 230 1,050 1,280 $ 2,469

Answer 1

Statement of Cash Flows
Operating Activities:
Net income		272
Adjustments to convert net income to a cash basis:
Depreciation	194		=(872-702)+24
Gain on Sale of Equipment	-2
Increase in Accounts receivable	-69
Increase in inventory	-57
Increase in accounts payable	117
Increase in accrued liabilities	44
Increase in income taxes payable	22
		249
Net cash provided by operating activities		521
Investing Activities:
Proceeds from sale of Equipment	24
Additions to Property, plant and Equipment	-84		=(1675-1637)+46
Net Cash used in Investing Activities		-60
Financing Activities:
Retirement of Bonds Payable	-270
Cash dividends paid	-250		=1050+272-1072
Net Cash Used in Financing Activities		-520
Net decrease in Cash		-59
Beginning cash and cash equivalents		115
Ending cash and cash equivalents		56