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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

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 $ 56 $ 115
Accounts receivable 810 741
Inventory 735 678
Total current assets 1,601 1,534
Property, plant, and equipment 1,675 1,637
Less accumulated depreciation 872 702
Net property,plant, and equipment 803 935
Total assets $ 2,404 $ 2,469
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 294 $ 177
Accrued liabilities 197 153
Income taxes payable 111 89
Total current liabilities 602 419
Bonds payable 500 770
Total liabilities 1,102 1,189
Stockholders' equity:
Common stock 230 230
Retained earnings 1,072 1,050
Total stockholders' equity 1,302 1,280
Total liabilities and stockholders' equity $ 2,404 $ 2,469

Burgess Company Income Statement (dollars in millions)
Sales $ 4,210
Cost of goods sold 2,880
Gross margin 1,330
Selling and administrative expenses 914
Net operating income 416
Nonoperating items: Gain on sale of equipment 2
Income before taxes 418
Income taxes 146
Net income $ 272

Burgess also provided the following information:

1.

The company sold equipment that had an original cost of $46 million and accumulated depreciation of $24 million. The cash proceeds from the sale were $24 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.)

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