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 $ 49 $ 101 Accounts receivable 740 678 Inventory 700 650 Total current assets 1,489 1,429 Property, plant, and equipment 1,605 1,574 Less accumulated depreciation 830 681 Net property,plant, and equipment 775 893 Total assets $ 2,264 $ 2,322 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 280 $ 170 Accrued liabilities 190 160 Income taxes payable 97 82 Total current liabilities 567 412 Bonds payable 465 700

Total liabilities 1,032 1,112 Stockholders' equity: Common stock 195 195 Retained earnings 1,037 1,015 Total stockholders' equity 1,232 1,210

Total liabilities and stockholders' equity $ 2,264 $ 2,322

Burgess Company Income Statement (dollars in millions) Sales $ 4,000 Cost of goods sold 2,740 Gross margin 1,260 Selling and administrative expenses 900 Net operating income 360 Nonoperating items: Gain on sale of equipment 2 Income before taxes 362 Income taxes 132 Net income $ 230 Burgess also provided the following information: 1. The company sold equipment that had an original cost of $32 million and accumulated depreciation of $17 million. The cash proceeds from the sale were $17 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- Indirect Method

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