A comparative balance sheet and an income statement for Burgess Company are given below:

Burgess Company Comparative Balance Sheet (dollars in millions)
	Ending Balance		Beginning Balance
Assets
Current assets:
Cash and cash equivalents	$	54	$	111
Accounts receivable		790		723
Inventory		725		670
Total current assets		1,569		1,504
Property, plant, and equipment		1,655		1,619
Less accumulated depreciation		860		696
Net property,plant, and equipment		795		923
Total assets	$	2,364	$	2,427
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	290	$	175
Accrued liabilities		195		155
Income taxes payable		107		87
Total current liabilities		592		417
Bonds payable		490		750
Total liabilities		1,082		1,167
Stockholders' equity:
Common stock		220		220
Retained earnings		1,062		1,040
Total stockholders' equity		1,282		1,260
Total liabilities and stockholders' equity	$	2,364	$	2,427

Burgess Company Income Statement (dollars in millions)
Sales	$	4,150
Cost of goods sold		2,840
Gross margin		1,310
Selling and administrative expenses		910
Net operating income		400
Nonoperating items: Gain on sale of equipment		2
Income before taxes		402
Income taxes		142
Net income	$	260

Burgess also provided the following information:

1.	The company sold equipment that had an original cost of $42 million and accumulated depreciation of $22 million. The cash proceeds from the sale were $22 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.)

Burgess Company
Statement of Cash Flows - Indirect Method
Operating activities:
Net income		$260
Adjustments to convert net income to cash basis:
Depreciation
Gain on sale of equipment
Decrease in accounts receivable
Increase in accounts payable
Increase in accrued liabilities
Increase in income taxes payable
Increase in inventory
Net cash provided by operating activities
Investing activities:
Proceeds from sale of equipment
Additions to plant and equipment
Net cash used in investing activities
Financing activities:
Retirement of bonds payable
Net cash used in financing activities
Net increase in cash
Beginning cash and cash equivalents
Ending cash and cash equivalents