A comparative balance sheet and an income statement for Burgess Company are given below: Burgess Company Comparative Balance Sheet (dollars in millions) Assets 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 Ending Balance Beginning Balance $ 47 $ 97 720 660 690 642 1,457 1,399 1,585 1,556 818 675 767 881 $ 2,224 $ 2,280 $ 276 188 $ 168 162 93 80 557 410 455 680 1,012 1,090 185 185 1,027 1,005 1,212 1,190 $ 2,224 $ 2,280 Burgess Company Income Statement (dollars in millions) Sales $ 3,940 Cost of goods sold 2,700 1,240 896 344 Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes Income taxes Net income Burgess also provided the following information: 2 346 128 $ 218 1. The company sold equipment that had an original cost of $28 million and accumulated depreciation of $15 million. The cash proceeds from the sale were $15 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 Adjustments to convert net income to a cash basis: Gain on sale of equipment Depreciation Increase in accounts receivable Increase in inventory Increase in accounts payable Increase in accrued liabilities Increase in income taxes payable Investing activities: Gain on sale of equipment Proceeds from sale of equipment Financing activities: Retirement of bonds payable Cash dividends paid $ (2) $ 218 (60) (18) 108 26 13 67 285 0 0 285 Beginning cash and cash equivalents Ending cash and cash equivalents $ 285