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 $ 56 810 735 601 $ 115 741 678 1,534 1,637 702 935 $ 2,469 675 803 $ 2,404 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 $ $ 294 197 111 602 500 1,102 177 153 89 419 770 1,189 230 1,072 1, 302 $ 2,404 230 1,050 1,280 $ 2,469 $4,210 2,880 1,330 Burgess Company Income Statement (dollars in millions) Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items : Gain on sale of equipment Income before taxes Income taxes Net income $ 272 Burgess also provided the following information: 1. The company sold equipment that had an original cost of $46 million and accumulated depreciation of $24 million. The cash proceeds from the sale were $24 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. Requirea: 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.) 272 $ 702 Burgess Company Statement of Cash Flows Operating activities: Net income Adjustments to convert net income to a cash basis: Depreciation Gain on sale of equipment Increase in accounts receivable Increase in inventory Increase in accounts payable Increase in accrued liabilities Increase in income taxes payable 974 Net cash provided by operating activities Investing activities: Proceeds from sale of equipment Additions to property, plant, and equipment Financing activities: Retirement of bonds payable Cash dividends paid Beginning cash and cash equivalents Ending cash and cash equivalents $ 974