A comparative balance sheet and an income statement for Burgess Company are given below: Burgess Company Comparative Balance Sheet (dollars in illions) Ending Beginning Balance Balance Assets Current assets: Cash and cash equivalents Accounts receivable $46 $ 95 651 638 710 685 Inventory Total current assets 1,441 1,384 1,575 1,547 672 Property, plant, and equipment 812 Less accumulated depreciation Net property.plant, and equipment Total assets 763 875 2,204 2,259 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities $ 274 $ 167 163 79 187 91 Income taxes payable Total current liabilities Bonds payable 552 450 409 670 Total liabilities 1,002 1,079 Stockholders' equity: 180 1,022 1,000 180 Common stock Retained earnings Total stockholders' equity 1,202 1,180 Total liabilities and stockholders' equity $2,204 $2,259 Burgess Company Income Statement (dollars in millions) Sales Cost of goods sold $ 3,910 2,680 Gross margin Selling and administrative expenses 1,230 894 336 Net operating income Nonoperating items: Gain on sale of equipment ncome before taxes Income taxes 338 126 $ 212 Net income 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 Required: 1. 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-Indirect Method Operating activities: Net income Adjustments to convert net income to cash basis: Depreciation Increase in accounts receivable Increase in inventory Increase in accounts payable Increase in accrued liabilities Increase in income taxes payable Gain on sale of equipment 0 Net cash provided by operating activities Investing activities: Proceeds from sale of equipment Additions to plant and equipment Net cash used in investing activities Financing activities Retirement of bonds payable Cash dividends Net cash used in financing activities Net decrease in cash Beginning cash and cash equivalents Ending cash and cash equivalents