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Balance 1 A comparative balance sheet and an income statement for Burgess Company are given below: Burgess Company Comparative Balance Sheet (dollars in millions) Ending

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Balance 1 A comparative balance sheet and an income statement for Burgess Company are given below: Burgess Company Comparative Balance Sheet (dollars in millions) Ending Beginning Balance Assets Current assets: Cash and cash equivalents $ 46 95 Accounts receivable 710 651 Inventory 685 638 Total current assets 1,441 1,384 Property, plant, and equipment 1,575 1,547 Less accumulated depreciation 812 672 Net property, plant, and equipment 763 875 Total assets $2,204 $2,259 Liabilities and Stockholders' Equity Current liabilities: Accounts payable 274 167 Accrued liabilities 187 163 Income taxes payable 91 79 Total current liabilities 552 409 Bonds payable 450 670 Total liabilities 1,002 1,079 Stockholders' equity: Common stock 180 180 Retained earnings 1,022 1,000 Total stockholders' equity 1,202 1,180 Total liabilities and stockholders' equity $2,204 $2,259 Burgess Company Income Statement (dollars in millions) Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes Income taxes Net income $3,910 2,689 1,230 894 336 338 126 $ 212 Burgess also provided the following information: 1. The company sold equipment that had an original cost of $26 million and accumulated depreciation of $14 million. The cash proceeds from the sale were $14 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.) Burgess Company Statement of Cash Flows Operating activities: + 0 0 Investing activities: 0 Financing activities: 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0

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