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	$	50		$	103
Accounts receivable		750			687
Inventory		705			654
Total current assets		1,505			1,444
Property, plant, and equipment		1,615			1,583
Less accumulated depreciation		836			684
Net property,plant, and equipment		779			899
Total assets	$	2,284		$	2,343
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	282		$	171
Accrued liabilities		191			159
Income taxes payable		99			83
Total current liabilities		572			413
Bonds payable		470			710
Total liabilities		1,042			1,123
Stockholders' equity:
Common stock		200			200
Retained earnings		1,042			1,020
Total stockholders' equity		1,242			1,220
Total liabilities and stockholders' equity	$	2,284		$	2,343

Burgess Company Income Statement (dollars in millions)
Sales	$	4,030
Cost of goods sold		2,760
Gross margin		1,270
Selling and administrative expenses		902
Net operating income		368
Nonoperating items:
Gain on sale of equipment		2
Income before taxes		370
Income taxes		134
Net income	$	236

Burgess also provided the following information:

The company sold equipment that had an original cost of $34 million and accumulated depreciation of $18 million. The cash proceeds from the sale were $18 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.