Problem 14-12 Prepare a Statement of Cash Flows [LO14-1, LO14-2] A comparative balance sheet and an income statement for Burgess Company are given below: Burgess Company Comparative Balance Sheet (dollars in millions) Ending Beginning Balance Balance Assets Current assets: $ 56 810 735 1,601 1,675 872 803 $2,404 Cash and cash equivalents $ 115 741 678 1,534 1,637 702 935 $2,469 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: $ 294 197 Accounts payable Accrued liabilities 153 89 419 770 1,189 Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders equity: 602 500 1,102 Common stock Retained earnings 230 1,072 1,302 $2,404 230 1,050 1,280 $2,469 Total stockholders' equity Total liabilities and stockholders' equity Burgess Company Income Statement (dollars in millions) $4,210 2,880 1,330 914 416 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes Income taxes Net income 418 146 $ 272 Burgess also provided the following information 1. The company sold equipment that had an original cost of $46 million and accumulated depreciation of $24 million. The cash proceeds from the sale were $24 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.) Burgess Company Statement of Cash Flows Operating activities: Investing activities: Financing activities Beginning cash and cash equivalents Ending cash and cash equivalents