Problem 15-12 (Algo) Prepare a Statement of Cash Flows (LO15-1, LO15-2] 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: Cash and cash equivalents $ 61 $ 125 Accounts receivable 860 786 Inventory 760 698 Total current assets 1,681 1,609 Property, plant, and equipment 1,725 1,682 Less accumulated depreciation 902 717 Net property, plant, and equipment 823 965 Total assets $ 2,504 $ 2,574 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 304 $ 182 Accrued liabilities 202 Income taxes payable 121 94 Total current liabilities 627 424 Bonds payable 525 820 Total liabilities 1,152 1,244 Stockholders' equity: Common stock 255 255 Retained earnings 1,097 1,075 Total stockholders' equity 1,352 1,330 Total liabilities and stockholders' equity $2,504 $ 2,574 148 Burgess Company Income Statement (dollars in millions) 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 $4,360 2,980 1,380 924 456 2 458 156 302 $ Burgess also provided the following Information: 1. The company sold equipment that had an original cost of $56 million and accumulated depreciation of $29 million. The cash proceeds from the sale were $29 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: 0 0 Investing activities: 0 Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0