A comparative balance sheet and an income statement for Burgess Company are given below. Burgess Company Comparative Balance Sheet Assets (dollars in millions) Current assets: Cash and cash equivalents Accounts receivable. Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Burgess Company Income Statement (dollars in millions). Sales $ 4,510 Cost of goods sold 3,080 1,430 934 Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes Income taxes Net income 496 2 498 166 $332 Ending Balance Beginning Balance $ 66 910 $135 831 785 718 1,761 1,684 1,775 1,727 932 732 843 995 $ 2,604 $ 2,679 $ 314 207 $ 187 143 131 99 652 429 550 870 1,202 1,299 280 280 1,122 1,402 $ 2,604 1,100 1,380 $ 2,679 1. The company sold equipment that had an original cost of $66 million and accumulated depreciation of $34 million. The cash proceeds from the sale were $34 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 Net income Proceeds from sale of equipment Increase in income taxes payable Investing activities Financing activites 332 0 332 0 332 Beginning cash and cash equivalents Ending cash and cash equivalents $ 332