Drop down options for box 1:

contribution margin

gross margin

net income

sales

Drop down options for box 2:

adjustments to convert contribution margin to a cash basis

adjustments to convert gross margin to a cash basis

adjustments to convert net income to a cash basis

adjustments to convert sales to a cash basis

Drop down options for box 3:

additions to property, plant, an equipment

cash dividends paid

decrease in accounts payable

decrease in accounts receivable

decrease in accrued liabilities

decrease in income taxes payable

decrease in inventory

depreciation

gain on sale of equipment

increase in accounts payable

increase in accounts receivable

increase in accrued liabilities

increase in income taxes payable

increase in inventory

issuance of bonds payable

proceeds from sale of equipment

retirement of bonds payable

Drop down options for box 4:

additions to property, plant, an equipment

cash dividends paid

decrease in accounts payable

decrease in accounts receivable

decrease in accrued liabilities

decrease in income taxes payable

decrease in inventory

depreciation

gain on sale of equipment

increase in accounts payable

increase in accounts receivable

increase in accrued liabilities

increase in income taxes payable

increase in inventory

issuance of bonds payable

proceeds from sale of equipment

retirement of bonds payable

Drop down options for box 5:

additions to property, plant, an equipment

cash dividends paid

decrease in accounts payable

decrease in accounts receivable

decrease in accrued liabilities

decrease in income taxes payable

decrease in inventory

depreciation

gain on sale of equipment

increase in accounts payable

increase in accounts receivable

increase in accrued liabilities

increase in income taxes payable

increase in inventory

issuance of bonds payable

proceeds from sale of equipment

retirement of bonds payable

Drop down options for box 6:

additions to property, plant, an equipment

cash dividends paid

decrease in accounts payable

decrease in accounts receivable

decrease in accrued liabilities

decrease in income taxes payable

decrease in inventory

depreciation

gain on sale of equipment

increase in accounts payable

increase in accounts receivable

increase in accrued liabilities

increase in income taxes payable

increase in inventory

issuance of bonds payable

proceeds from sale of equipment

retirement of bonds payable

Drop down options for box 7:

additions to property, plant, an equipment

cash dividends paid

decrease in accounts payable

decrease in accounts receivable

decrease in accrued liabilities

decrease in income taxes payable

decrease in inventory

depreciation

gain on sale of equipment

increase in accounts payable

increase in accounts receivable

increase in accrued liabilities

increase in income taxes payable

increase in inventory

issuance of bonds payable

proceeds from sale of equipment

retirement of bonds payable

Drop down options for box 8:

additions to property, plant, an equipment

cash dividends paid

decrease in accounts payable

decrease in accounts receivable

decrease in accrued liabilities

decrease in income taxes payable

decrease in inventory

depreciation

gain on sale of equipment

increase in accounts payable

increase in accounts receivable

increase in accrued liabilities

increase in income taxes payable

increase in inventory

issuance of bonds payable

proceeds from sale of equipment

retirement of bonds payable

Drop down options for box 9:

additions to property, plant, an equipment

cash dividends paid

decrease in accounts payable

decrease in accounts receivable

decrease in accrued liabilities

decrease in income taxes payable

decrease in inventory

depreciation

gain on sale of equipment

increase in accounts payable

increase in accounts receivable

increase in accrued liabilities

increase in income taxes payable

increase in inventory

issuance of bonds payable

proceeds from sale of equipment

retirement of bonds payable

Drop down options for box 10:

additions to property, plant, an equipment

cash dividends paid

decrease in accounts payable

decrease in accounts receivable

decrease in accrued liabilities

decrease in income taxes payable

decrease in inventory

depreciation

gain on sale of equipment

increase in accounts payable

increase in accounts receivable

increase in accrued liabilities

increase in income taxes payable

increase in inventory

issuance of bonds payable

proceeds from sale of equipment

retirement of bonds payable

Drop down options for box 11:

net cash provided by financing activities

net cash provided by investing activities

net cash provided by operating activities

net cash used in financing activities

net cash used in investing activities

net cash used in operating activities

Drop down options for Box 12:

additions to property, plant, an equipment

cash dividends paid

decrease in accounts payable

decrease in accounts receivable

decrease in accrued liabilities

decrease in income taxes payable

decrease in inventory

depreciation

gain on sale of equipment

increase in accounts payable

increase in accounts receivable

increase in accrued liabilities

increase in income taxes payable

increase in inventory

issuance of bonds payable

proceeds from sale of equipment

retirement of bonds payable

Drop down options for box 13:

additions to property, plant, an equipment

cash dividends paid

decrease in accounts payable

decrease in accounts receivable

decrease in accrued liabilities

decrease in income taxes payable

decrease in inventory

depreciation

gain on sale of equipment

increase in accounts payable

increase in accounts receivable

increase in accrued liabilities

increase in income taxes payable

increase in inventory

issuance of bonds payable

proceeds from sale of equipment

retirement of bonds payable

Drop down options for box 14:

additions to property, plant, an equipment

cash dividends paid

decrease in accounts payable

decrease in accounts receivable

decrease in accrued liabilities

decrease in income taxes payable

decrease in inventory

depreciation

gain on sale of equipment

increase in accounts payable

increase in accounts receivable

increase in accrued liabilities

increase in income taxes payable

increase in inventory

issuance of bonds payable

proceeds from sale of equipment

retirement of bonds payable

Drop down options for box 15:

net cash provided by financing activities

net cash provided by investing activities

net cash provided by operating activities

net cash used in financing activities

net cash used in investing activities

net cash used in operating activities

Drop down options for box 16:

additions to property, plant, an equipment

cash dividends paid

decrease in accounts payable

decrease in accounts receivable

decrease in accrued liabilities

decrease in income taxes payable

decrease in inventory

depreciation

gain on sale of equipment

increase in accounts payable

increase in accounts receivable

increase in accrued liabilities

increase in income taxes payable

increase in inventory

issuance of bonds payable

proceeds from sale of equipment

retirement of bonds payable

Drop down options for box 17:

additions to property, plant, an equipment

cash dividends paid

decrease in accounts payable

decrease in accounts receivable

decrease in accrued liabilities

decrease in income taxes payable

decrease in inventory

depreciation

gain on sale of equipment

increase in accounts payable

increase in accounts receivable

increase in accrued liabilities

increase in income taxes payable

increase in inventory

issuance of bonds payable

proceeds from sale of equipment

retirement of bonds payable

Drop down options for box 18:

additions to property, plant, an equipment

cash dividends paid

decrease in accounts payable

decrease in accounts receivable

decrease in accrued liabilities

decrease in income taxes payable

decrease in inventory

depreciation

gain on sale of equipment

increase in accounts payable

increase in accounts receivable

increase in accrued liabilities

increase in income taxes payable

increase in inventory

issuance of bonds payable

proceeds from sale of equipment

retirement of bonds payable

Drop down options for box 19:

net cash provided by financing activities

net cash provided by investing activities

net cash provided by operating activities

net cash used in financing activities

net cash used in investing activities

net cash used in operating activities

Drop down options for box 20:

net decrease in cash

net increase in cash

Burgess also provided the following information: 1. The company sold equipment that had an original cost of $40 million and accumulated depreciation of $21 million. The cash proceeds from the sale were $21 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.)