The comparative balance sheets for 2013 and 2012 are given below for Surmise Company. Net income for 2013 was $86 million. – Online Homework Help


The comparative balance sheets for 2013 and 2012 are given below for Surmise Company. Net income for 2013 was $86 million.
SURMISE COMPANY
Comparative Balance Sheets
December 31, 2013 and 2012
($ in millions)

2013
2012
  Assets




  Cash
$
88  
$
38  
  Accounts receivable

93  

113  
      Less: Allowance for uncollectible accounts

(28)  

(5)  
  Prepaid expenses

23  

19  
  Inventory

130  

105  
  Long-term investment

153  

110  
  Land

106  

106  
  Buildings and equipment

416  

285  
      Less: Accumulated depreciation

(146)

(114)  
  Patent

28  

29  






$
863  
$
686  









  Liabilities




  Accounts payable
$
26  
$
48  
  Accrued liabilities

(3)  

23  
  Notes payable

54  

0  
  Lease liability

131  

0  
  Bonds payable

68  

142  
  Shareholders’ Equity




  Common stock

72  

50  
  Paid-in capital—excess of par

267  

205  
  Retained earnings

248  

218  






$
863  
$
686  











Required:
Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2013. Use the indirect method to present cash flows from operating activities because you do not have sufficient information to use the direct method. You will need to make reasonable assumptions concerning the reasons for changes in some account balances. A spreadsheet or T-account analysis will be helpful. (Enter your answers in millions. Amounts to be deducted should be indicated with a minus sign.)
SURMISE COMPANY
Statement of Cash Flows
For year ended December 31, 2013
($ in millions)
  Cash flows from operating activities:


  Net income
$  

  Adjustments for noncash effects:


     


     


     


  Changes in operating assets and liabilities:


       


       


       


       


       





  Net cash flows from operating activities

$  
  Cash flows from investing activities:


     





  Net cash flows from investing activities


  Cash flows from financing activities:


     


     


     


     





  Net cash flows from financing activities





     





  Cash balance, January 1

$  



  Cash balance, December 31

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