Problem 13-12 Prepare a Statement of Cash Flows [LO13-1, LO13-2] 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 $ 63 $ 129 804 880 770 1, 713 1, 745 1,639 1.700 Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity : Common stock Retained earnings $ 2,544 $2,616 $ $ 308 204 184 146 125 426 840 1, 266 1, 172 265 1, 107 265 1,085 265 Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 265 1, 107 1,372 $2,544 1,085 1.350 $2,616 Burgess Company Income Statement (dollars in millions) Sales Cost of goods sold Gross margin Selling and administrative expenses Not operating income Nonoperating items Gain on sale of equipment Income before taxes Income taxes Net income $4,420 13,020 1,400 928 472 474 314 Burgess also provided the following information: 1. The company sold equipment that had an original cost of $60 million and accumulated depreciation of $31 million. The cash proceeds from the sale were $31 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 Check my work 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: Investing activities: