A comparative balance sheet and an income statement for Burgess Company are give

Question

A comparative balance sheet and an income statement for Burgess Company are given below:

Burgess also provided the following information:

The company sold equipment that had an original cost of $22 million and accumulated depreciation of $12 million. The cash proceeds from the sale were $12 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 . List any deduction in cash and cash outflows as negative amounts.)

A comparative balance sheet and an income statement for Burgess Company are given below:

Explanation / Answer

Indirect Method Cash Flow from Operating Activities Net Income 200 Less: Gain on Sale -2 Add: Loss on sale of equipment Depreciation 146 Increase in Accounts Receivable -57 Increase in Inventory -45 Increase in Prepaid Expenses Increase in Accounts Payable 105 Increasein Accrued Liabilities 20 Increase in Tax Payable 10 Cash Flow from Operating Activities 377 Cash Flow from Investing Activities Equpment Sold 12 Investments sold Bonds Payable -210 -198 Cash Flow from Financing Activities Stock Repurchased Dividend (990+200-1012) -178 Cash Flow from Financing Activities -178 Net Cash Change -47 Opening Cash 91 Ending Cash 44

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.