A comparative balance sheet and an income statement for Burgess Company are give
ID: 2497323 • Letter: A
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 $32 million and accumulated depreciation of $17 million. The cash proceeds from the sale were $17 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
Burgess company
Statement of Cash Flows
for the year ended xxxxxx
Cash flows from operating activities
Net income
$230
Adjustments for:
Depreciation and amortization
166
Increase in Accounts receivables
-62
Increase in inventories
-50
Increase in Accounts payables
110
Increase in accrued liabilities
30
Increase in Income taxes payables
15
Gain on sale of investments
2
$211
Net Cash from Operating Activities
$441
Net cash from Investing activities
Decrease Plant And equipment
118
Proceeds from sale of equipment
17
Net cash used in investing activities
$135
Net cash from financing activities
Redemption of bonds
-35
Cash dividends
-208
Net cash used in financing activities
($243)
Net increase in cash
$333
Cash balance as of Beg
101
Cash balance as of Ending
$434
Burgess company
Statement of Cash Flows
for the year ended xxxxxx
Cash flows from operating activities
Net income
$230
Adjustments for:
Depreciation and amortization
166
Increase in Accounts receivables
-62
Increase in inventories
-50
Increase in Accounts payables
110
Increase in accrued liabilities
30
Increase in Income taxes payables
15
Gain on sale of investments
2
$211
Net Cash from Operating Activities
$441
Net cash from Investing activities
Decrease Plant And equipment
118
Proceeds from sale of equipment
17
Net cash used in investing activities
$135
Net cash from financing activities
Redemption of bonds
-35
Cash dividends
-208
Net cash used in financing activities
($243)
Net increase in cash
$333
Cash balance as of Beg
101
Cash balance as of Ending
$434
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