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	$	69	$	141
Accounts receivable		940		858
Inventory		800		730
Total current assets		1,809		1,729
Property, plant, and equipment		1,805		1,754
Less accumulated depreciation		950		741
Net property,plant, and equipment		855		1,013
Total assets	$	2,664	$	2,742
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	320	$	190
Accrued liabilities		210		140
Income taxes payable		137		102
Total current liabilities		667		432
Bonds payable		565		900
Total liabilities		1,232		1,332
Stockholders' equity:
Common stock		295		295
Retained earnings		1,137		1,115
Total stockholders' equity		1,432		1,410
Total liabilities and stockholders' equity	$	2,664	$	2,742

Burgess Company Income Statement (dollars in millions)
Sales	$	4,600
Cost of goods sold		3,140
Gross margin		1,460
Selling and administrative expenses		940
Net operating income		520
Nonoperating items: Gain on sale of equipment		2
Income before taxes		522
Income taxes		172
Net income	$	350

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.

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
Operating activities:
Adjustments to convert net income to cash basis:
		0
		0
Investing activities:
		0
Financing activities:
		0
		0
Beginning cash and cash equivalents
Ending cash and cash equivalents		$0