Question

Burns Corporation's net income last year was $99,200. Changes in the company's balance sheet accounts for...

Burns Corporation's net income last year was $99,200. Changes in the company's balance sheet accounts for the year appear below:

Increases
(Decreases)
Asset and Contra-Asset Accounts:
Cash and cash equivalents $ 20,700
Accounts receivable $ 13,300
Inventory $ (16,300 )
Prepaid expenses $ 4,200
Long-term investments $ 11,000
Property, plant, and equipment $ 75,600
Accumulated depreciation $ 34,100
Liability and Equity Accounts:
Accounts payable $ (19,600 )
Accrued liabilities $ 17,400
Income taxes payable $ 4,300
Bonds payable $ (66,000 )
Common stock $ 43,200
Retained earnings $ 95,100

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 $4,100.

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.

Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.) (Amounts to be deducted and cash outflows should be indicated with a minus sign.)
Operating activities:
Adjustments:
0
$0

Prepare the investing activities section of the company's statement of cash flows for the year. (Amounts to be deducted and cash outflows should be indicated with a minus sign.)
Investing activities:
$0

Prepare the financing activities section of the company's statement of cash flows for the year. (Amounts to be deducted and cash outflows should be indicated with a minus sign.)
Financing activities:
$0
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Homework Answers

Answer #1
Operating activities
net income 99,200
Adjustments
Depreciation expense 34,100
increase in accounts receivable -13,300
decrease in inventory 16,300
increase in prepaid expense -4,200
Decrease in accounts payable -19,600
increase in accrued liabilities 17,400
increase in income taxes payable 4,300
35,000
net cash provided by operating activities 134,200
Investing activities
purchase of property,plant and equipement -75600
long term investment -11000
Net cash used by investing activities -86600
financing activities
payment of bonds -66000
cash from stock issue 43,200
cash dividend -4,100
net cash used by financing activities -26900
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