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 $ $62$ $ $127$

Accounts receivable $870795$

Inventory $765702$

Total current assets $1,6971,624$

Property, plant, and equipment $1,7351,691$

Less accumulated depreciation $908720$

Net property,plant, and equipment $827971$

Total assets $ $2,524$ $ $2,595$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ $306$ $ $183$

Accrued liabilities $203147$

Income taxes payable $12395$

Total current liabilities $632425$

Bonds payable $530830$

Total liabilities $1,1621,255$

Stockholders' equity:

Common stock $260260$

Retained earnings $1,1021,080$

Total stockholders' equity $1,3621,340$

Total liabilities and stockholders' equity $ $2,524$ $ $2,595$

Burgess Company

Income Statement

$($dollars in millions$)$

Sales $ $4,390$

Cost of goods sold $3,000$

Gross margin $1,390$

Selling and administrative expenses $926$

Net operating income $464$

Nonoperating items:

Gain on sale of equipment $2$

Income before taxes $466$

Income taxes $158$

Net income $ $308$

Burgess also provided the following information:

The company sold equipment that had an original cost of $$58$ million and accumulated depreciation of $$30$ million. The cash proceeds from the sale were $$30$ million. The gain on the sale was $$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.

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.$)$