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A comparative balance sheet and an income statement for Burgess Company are given below: Beginning Balance $ 105 696 658 1,459 1,592 687 905 Burgess
A comparative balance sheet and an income statement for Burgess Company are given below: Beginning Balance $ 105 696 658 1,459 1,592 687 905 Burgess Company Comparative Balance Sheet (dollars in millions) Ending Balance Assets Current assets: Cash and cash equivalents $ 51 Accounts receivable 760 Inventory 710 Total current assets 1,521 Property, plant, and equipment 1,625 Less accumulated depreciation 842 Net property, plant, and equipment 783 Total assets $ 2,304 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 284 Accrued liabilities 192 Income taxes payable 101 Total current liabilities 577 Bonds payable 475 Total liabilities 1,052 Stockholders' equity: Common stock 205 Retained earnings 1,047 Total stockholders' equity 1,252 Total liabilities and stockholders' equity $ 2,304 $ 2,364 $ 172 158 84 414 720 1,134 205 1,025 1,230 2,364 $ Burgess Company Income Statement (dollars in millions) Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes Income taxes Net income $ 4,060 2,780 1,280 904 376 2 378 136 $ 242 Burgess also provided the following information: 1. The company sold equipment that had an original cost of $36 million and accumulated depreciation of $19 million. The cash proceeds from the sale were $19 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: 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 Operating activities: 0 0 Investing activities: n Burgess Company Statement of Cash Flows Operating activities: 0 0 Investing activities: 0 Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0
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