A comparative balance sheet and an income statement for Burgess Company are given below:

Burgess Company Comparative Balance Sheet (dollars in millions)
	Ending Balance	Beginning Balance
Assets
Current assets:
Cash and cash equivalents	$ 61	$ 125
Accounts receivable	860	786
Inventory	760	698
Total current assets	1,681	1,609
Property, plant, and equipment	1,725	1,682
Less accumulated depreciation	902	717
Net property,plant, and equipment	823	965
Total assets	$ 2,504	$ 2,574
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 304	$ 182
Accrued liabilities	202	148
Income taxes payable	121	94
Total current liabilities	627	424
Bonds payable	525	820
Total liabilities	1,152	1,244
Stockholders' equity:
Common stock	255	255
Retained earnings	1,097	1,075
Total stockholders' equity	1,352	1,330
Total liabilities and stockholders' equity	$ 2,504	$ 2,574

Burgess Company Income Statement (dollars in millions)
Sales	$ 4,360
Cost of goods sold	2,980
Gross margin	1,380
Selling and administrative expenses	924
Net operating income	456
Nonoperating items:
Gain on sale of equipment	2
Income before taxes	458
Income taxes	156
Net income	$ 302

Burgess also provided the following information:

The company sold equipment that had an original cost of $56 million and accumulated depreciation of $29 million. The cash proceeds from the sale were $29 million. The gain on the sale was $2 million.

The company did not issue any new bonds during the year.

The company paid a cash dividend during the year.

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

1.Operating activities:

2: Investing activities:

3. Financing activities:

4Beginning cash and cash equivalents

5Ending cash and cash equivalents