Blankley also provided the following information: The company sold equipment tha

Question

Blankley also provided the following information:

The company sold equipment that had an original cost of $48 million and accumulated depreciation of $25 million. The cash proceeds from the sale were $25 million. The gain on the sale was $2 million.

Using the indirect method, prepare a statement of cash flows for the year. (Enter your answers in millions not in dollars. Amounts to be deducted and negative amounts should be indicated with a minus sign.)

Blankley Company
Comparative Balance Sheet
(dollars in millions) Ending
Balance Beginning
Balance Assets Current assets: Cash and cash equivalents $ 57 $ 117 Accounts receivable 820 750 Inventory 740 682 Total current assets 1,617 1,549 Property, plant, and equipment 1,685 1,646 Less accumulated depreciation 878 705 Net property, plant, and equipment 807 941 Total assets
$ 2,424 $ 2,490 Liabilities and Stockholders' equity Current liabilities: Accounts payable $ 296 $ 178 Accrued liabilities 198 152 Income taxes payable 113 90 Total current liabilities 607 420 Bonds payable 505 780
Total liabilities 1,112 1,200 Stockholders' equity: Common stock 235 235 Retained earnings 1,077 1,055 Total stockholders' equity 1,312 1,290
Total liabilities and stockholders' equity $ 2,424 $ 2,490

Explanation / Answer

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