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A comparative balance sheet and an income statement for Burgess Company are given below: begin{tabular}{|c|c|c|} hline begin{tabular}{l} Burgess Company Comparative Balance Sheet (dollars
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A comparative balance sheet and an income statement for Burgess Company are given below: \begin{tabular}{|c|c|c|} \hline \begin{tabular}{l} Burgess Company \\ Comparative Balance Sheet \\ (dollars in millions) \end{tabular} & \begin{tabular}{l} Ending \\ Balance \end{tabular} & \begin{tabular}{c} Beginning \\ Balance \end{tabular} \\ \hline \multicolumn{3}{|l|}{ Assets } \\ \hline \multicolumn{3}{|l|}{ Current assets: } \\ \hline Cash and cash equivalents & $44 & $91 \\ \hline Accounts receivable & 690 & 633 \\ \hline Inventory & 675 & 630 \\ \hline Total current assets & 1,409 & 1,354 \\ \hline Property, plant, and equipment & 1,555 & 1,529 \\ \hline Less accumulated depreciation & 800 & 666 \\ \hline Net property,plant, and equipment & 755 & 863 \\ \hline Total assets & $2,164 & $2,217 \\ \hline Liabilities and Stockholders' Equity & & \\ \hline \multicolumn{3}{|l|}{ Current liabilities: } \\ \hline Accounts payable & $270 & $165 \\ \hline Accrued liabilities & 185 & 165 \\ \hline Income taxes payable & 87 & 77 \\ \hline Total current liabilities & 542 & 407 \\ \hline Bonds payable & 440 & 650 \\ \hline Total liabilities & 982 & 1,057 \\ \hline \multicolumn{3}{|l|}{ Stockholders' equity: } \\ \hline Common stock & 170 & 170 \\ \hline Retained earnings & 1,012 & 990 \\ \hline Total stockholders' equity & 1,182 & 1,160 \\ \hline Total liabilities and stockholders' equity & $2,164 & $2,217 \\ \hline \end{tabular} Burgess also provided the following information: 1. The company sold equipment that had an original cost of $22 million and accumulated depreciation of $12 million. The cash proceeds from the sale were $12 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: 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.)
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