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 Company Comparative Balance Sheet (dollars in millions) Ending Beginning Balance Balance Assets Current assets: Cash and cash equivalents 5 61 125 788 860 760 Total current assets 1,631 1,609 Property, plant, and equipment 1,725 1,682 Less accumulated depreciation Net property,plant, and equipment Total assets 902 085 5 2,504 2,574 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable S 304 182 148 94 121 Total current liabilities Bonds payable Total liabilities 1,152 1,244 Stockholders' equity: Common stock 255 1,097 1,075 Total stockholders' equity 1,352 1,330 Total liabilities and stockholders' equity 5 2,504 2,574

Explanation / Answer

Answer:

Burgess company Statement of cash flow For the year Ended Particulars Amount Cash flow from operating activities: Net income 302 Adjustment to be reconcile net income to net cash provided by operating activities: Depreciation expense 214 Gain on sale of equipment -2 Increase in accounts receivable -74 Increase in merchandise inventory -62 Increase in accounts payable 122 Increase in income tax payables 27 Increase in accrued liabilities 54 Net cash flow from operating activities 581 Cash flow from investing activities: Purchase of plant and equipment -43 Sale of equipment 29 Net cash flow from investing activities -14 Cash flow from financing Activities: Cash Dividend paid -336 Retirement of bonds payable -295 Net cash flow from financing activities -631 Net Increase in cash -64 Cash at beginning of year 125 Cash at end of year 61

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