Problem $15-19($Static$)$ 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 $ $49$ $ $79$

Accounts receivable $645580$

Inventory $660615$

Total current assets $1,3541,274$

Property, plant, and equipment $1,5151,466$

Less accumulated depreciation $765641$

Net property, plant, and equipment $750825$

Total assets $ $2,104$ $ $2,099$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ $250$ $ $155$

Accrued liabilities $190165$

Income taxes payable $7670$

Total current liabilities $516390$

Bonds payable $450620$

Total liabilities $9661,010$

Stockholders' equity:

Common stock $161161$

Retained earnings $977928$

Total stockholders' equity $1,1381,089$

Total liabilities and stockholders' equity $ $2,104$ $ $2,099$

Burgess Company

Income Statement

$($dollars in millions$)$

Sales $ $3,600$

Cost of goods sold $2,550$

Gross margin $1,050$

Selling and administrative expenses $875$

Net operating income $175$

Nonoperating items:

Gain on sale of equipment $3$

Income before taxes $178$

Income taxes $63$

Net income $ $115$

Burgess also provided the following information:

The company sold equipment for $$8$ million that originally cost $$13$ million with accumulated depreciation of $$8$ million. The gain on the sale was $$3$ 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.