Burns Corporation\'s net income last year was $97,400. Changes in the company\'s

Question

Burns Corporation's net income last year was $97,400. Changes in the company's balance sheet accounts for the year appear below Increases (Decreases) Asset and Contra-Asset Accounts: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation $ 18,800 $ 13,800 $ (17,600) $ 4,400 $ 10,900 $ 75,600 $ 32,900 Liability and Equity Accounts: Accounts payable Accrued liabilities Income taxes payable Bonds pavable Common stock Retained earnings $ (18,700) $ 17,100 $ 4,200e $ (64,200) $ 41,600 $ 93,000 The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,400 Required a. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) b. Prepare the investing activities section of the company's statement of cash flows for the year. c. Prepare the financing activities section of the company's statement of cash flows for the year.

Explanation / Answer

Required A Operating Activities: Net Income 94,700 Adjustments: Decrease in accounts payable -18,700 increase in inventory -17,600 Depreciation 32,900 decrease in accounts receivable 13,800 increase in accrued liabilities 17,100 increase in income taxes payable 4,200 decrease in prepaid expenses 4,400 36,100 Net cash provided by operating activities 130,800 Required B investing activities: purchase of long term investments -10,900 purchase of property,plant &Equipment -75,600 Net cash used by investing activities -86,500 Required C Financing activities: Paying a dividend -4400 Repaying principal on bonds payable -64,200 issuance of common stock 41,600 Net cash used by financing activities -27000

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