Problem $15-19($Algo$)$ Prepare a Statement of Cash Flows $[$LO$15-1,$ LO$15-2,$ LO$15-3,$ LO$15-4,$ LO$15-5]$

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 $ $50$ $ $103$

Accounts receivable $750687$

Inventory $705654$

Total current assets $1,5051,444$

Property, plant, and equipment $1,6151,583$

Less accumulated depreciation $836684$

Net property, plant, and equipment $779899$

Total assets $ $2,284$ $ $2,343$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ $282$ $ $171$

Accrued liabilities $191159$

Income taxes payable $9983$

Total current liabilities $572413$

Bonds payable $470710$

Total liabilities $1,0421,123$

Stockholders' equity:

Common stock $200200$

Retained earnings $1,0421,020$

Total stockholders' equity $1,2421,220$

Total liabilities and stockholders' equity $ $2,284$ $ $2,343$

Burgess Company

Income Statement

$($dollars in millions$)$

Sales $ $4,030$

Cost of goods sold $2,760$

Gross margin $1,270$

Selling and administrative expenses $902$

Net operating income $368$

Nonoperating items:

Gain on sale of equipment $2$

Income before taxes $370$

Income taxes $134$

Net income $ $236$

Burgess also provided the following information:

The company sold equipment for $$18$ million that originally cost $$34$ million with accumulated depreciation of $$18$ million. The gain on the sale was $$2$ million.

The company did not issue any new bonds, or complete any common stock transactions during the year.

Required:

$1.$ Using the indirect method, prepare a statement of cash flows.

Note: Enter your answers in millions not in dollars. List any deduction in cash and cash outflows as negative amounts.