1.
fill in blanks please. I want it in this format only
Prepare a Statement of Cash Flows [LO14-1, LO14-2] 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 $66 million and
accumulated depreciation of $34 million. The cash proceeds from the sale were $34 million. The
gain on the sale was $2 million. The company did not issue any new bonds during the year. The
company paid a cash dividend during the year. The company did not complete any common
stock transactions during the year.
Solution
Operating activities Net income 332 Adjustments depreciation -221 Increase in accounts
receivables -79 Increase in inventory -67 Increase in accounts payable 127 Increase in accrued
liabilities 64 Increase in income tax payable 32 Gain on sale of equipment -2 -146 Net cash
provided by operating activities 186 Investing activities Proceed from sale of equipment 34
Additions to plant and equipment -34 Net cash used in investing activities 0 Financing activities
Retirement of bonds payable -220 cash dividends 220 Net cash used in financing activities 0