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 Burgess Company Income Statement (dollars in millions) Sales $ 4,600 Cost of goods sold 3,140 Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment 1,460 940 520 2 Income before taxes 522 172 $ 350 Ending Balance Beginning Balance $ 69 $ 141 940 858 800 730 1,809 1,729 1,805 1,754 950 741 855 1,013 $ 2,664 $ 2,742 $ 320 $ 190 210 140 137 102 667 432 565 900 1,232 1,332 295 295 1,137 1,115 1,432 1,410 $ 2,664 $ 2,742 Income taxes Net income Burgess also provided the following information: 1. The company sold equipment that had an original cost of $72 million and accumulated depreciation of $37 million. The cash proceeds from the sale were $37 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.