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 $ 49 $ 79 Accounts receivable 645 580 Inventory 660 615 Total current assets 1.354 1,274 Property, plant. and equipment 1,515 1,466 Less accumulated depreciation 765 641 Net property, plant, and equipment 750 825 Total assets $2,104 $2,099 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $250 $155 Accrued liabilities 190 165 Income taxes payable 76 70 Total current liabilities 516 390 Bonds payable 450 610 Total liabilities 966 1.010 Stockholders' equity: Common stock 161 161 Retained earnings 977 928 Total stockholders equity 1,138 1,089 Total liabilities and stockholders equity $2,104 $2,099 Burgess Company Income Statement (dollars in millions) Sales $3,600 Cost of goods sold 2,550 Gross margin 1,050 Selling and administrative expenses 875 Net operating income 175 Nonoperating items: Gain on sale of equipment 3 Income before taxes 178 Income taxes 63 Net income $ 115 Burgess also provided the following information: The company sold equipment that had an original cost of $13 million and accumulated depreciation of $8 million. The cash proceeds from the sale were $8 million. The gain on the sale was $3 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. Required: Using the indirect method, prepare a statement of cash 1lows for the year. Assume that Burgess had sales of $3,800, net income of $135, mid net cash provided by operating activities of $150 in the prior year (all numbers are stated in millions). Prepare a memo that summarizes your interpretations of Burgesss financial performance.