A comparative balance sheet and an income statement for Burgess Company are given below: Burgess Company Comparative Balance Sheet (dollars in millions) Ending Beginning Balance Balance Assets Current as sets : Cash and cash equivalents $ 46 $ 95 Accounts receivable 710 651 Inventory 685 638 Total current assets 1,441 1,384 Property, plant, and equipment 1,575 1,547 Less accumulated depreciation 812 672 Net property,plant, and equipment 763 875 Total assets $ 2,204 $ 2,259 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 274 $ 167 Accrued liabilities 187 163 Income taxes payable 91 79 Total current liabilities 552 409 Bonds payable 450 670 Total liabilities 1,002 1,079 Stockholders' equity: Common stock 180 180 Retained earnings 1,022 1,000 Total stockholders' equity 1,202 1,180 Total liabilities and stockholders' equity $ 2,204 $ 2,259 Burgess Company Income Statement (dollars in millions) Sales $ 3,910 Cost of goods sold 2,680 Gross margin 1,230 Selling and administrative expenses 894 Net Operating income 336 Nonoperating items: Gain on sale of equipment 2 Income before taxes 338 Income taxes 126 Net income $ 212 Burgess also provided the following information: 1. The company sold equipment that had an original cost of $26 million and accumulated depreciation of $14 million. The cash proceeds from the sale were $14 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. Burgess Company Statement of Cash Flows Operating activities: Investing activities: Financing activities: