7 A comparative balance sheet and an income statement for Burgess Company are given below: 15 points Burgess Company Comparative Balance Sheet (dollars in millions) Ending Beginning Balance Balance Assets Current assets: Cash and cash equivalents $ 41 $ 85 Accounts receivable 660 606 Inventory 660 618 eBook Print Total current assets 1,361 1,309 1,525 782 1,502 657 References Property, plant, and equipment Less accumulated depreciation Net property.plant, and equipment Total assets 743 845 $ 2104 $ 2154 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable $ 264 $ 182 81 162 168 74 527 425 404 620 Total liabilities 952 1,024 Stockholders' equity: Common stock Retained earnings 155 997 155 975 Total stockholders' equity 7 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable $ 264 $ 182 81 162 168 74 Total current liabilities Bonds payable 1.5 points 527 425 404 620 Total liabilities 952 1,024 eBook Stockholders' equity: Common stock Retained earnings 155 997 155 975 Print Total stockholders' equity 1,152 1,130 References Total liabilities and stockholders' equity $2,104 $ 2,154 Burgess Company Income Statement (dollars in millions) Sales Cost of goods sold $ 3,760 2,580 Gross margin Selling and administrative expenses 1,480 884 296 Net operating income Nonoperating items: Gain on sale of equipment 2 Income before taxes Income taxes 298 116 Net income $ 182 Income taxes Net income $ 182 Burgess also provided the following information: 1. The company sold equipment that had an original cost of $16 million and accumulated depreciation of $9 million. The cash proceeds from the sale were $9 million. The gain on the sale was $2 million. 2. The company did not issue any new bonds during the year. 3. The company paid a cash dividend during the year. 4. The company did not complete any common stock transactions during the year. Required: 1. Using the indirect method, prepare a statement of cash flows for the year. (Enter your answers in millions not in dollars. List any deduction in cash and cash outflows as negative amounts.) eBook Print eferences Burgess Company Statement of Cash Flows Operating activities: Adjustments to convert net income to cash basis: Investing activities: Burgess Company Statement of Cash Flows Operating activities: Adjustments to convert net income to cash basis: ook rint Investing activities: erences Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents