PROBLEM 14-11 Prepare a Statement of Cash Flows [L01, 102] A comparative balance sheet and an income statement for Blankley Company are given below: Blankley Company Comparative Balance Sheet (dollars in millions) 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 labilities. Income taxes payable. Total current liabilities Bonds payable.. Total liabilities.. Stockholders' equity Ending Beginning Balance Balance $ 39 $ 81 640 588 650 610 PHP Tall 1,329 1,279 1,505 770 1,484 651 735 833 $2.064 $2,112 $200 $ 160 180 170 77 72 517 402 415 600 932 1,002 Common stock 145 145 Retained earnings. 907 965 Total stockholders' equity. 1,132 1,110 Total liabilities and stockholders' equity. $2,064 $2,112 Bankley Company Income Statement (dollars in mitional Sales... $3,700 Cost of goods sold. 2.540 Gross margin. 1,160 Selling and administrative expenses 880 Net operating income 200 Nonoperating items: Gain on sale of equipment 2 Income before taxes.. 282 Income taxes... 112 Net income. 170 Blankley also provided the following information 1. The company sold equipment that had an original cost of $12 million and accumulated depre ciation of $7 million. The cash proceeds from the sale were $7 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 2. Assume that Blankley had sales of $3,900, net income of $190, and net cash provided by operating activities of $160 in the prior year (all numbers are stated in millions). Prepare a memo that summarizes your interpretations of Blankley's financial performance