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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

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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 $ 66 $ 135 Accounts receivable 910 831 Inventory 785 718 Total current assets 2,761 1,684 Property, plant, and equipment 1,775 1,727 Less accumulated depreciation 932 732 Net property, plant, and equipment 843 995 Total assets $ 2,604 $ 2,679 Liabilities and Stockholders. Equity Current liabilities: Accounts payable $ 314 $ 187 Accrued liabilities 207 143 Income taxes payable 131 99 Total current liabilities 652 429 Bonds payable 558 87e Total liabilities 1,202 1,299 Stockholders' equity: Common stock 280 280 Retained earnings 1,122 1 100 Total stockholders equity 1.402 1380 Total liabilities and stockholders equity $ 2,604 $ 2,679 Burgess Company Income Statement (dollars in millions) Sales $4,510 Cost of goods sold 3,080 Gross margin 1,430 Selling and administrative expenses 934 Net operating income 496 Nonoperating items! Gain on sale of equipment Income before taxes 498 Income taxes 166 Net income ******** $ 332 1. The company sold equipment that had an original cost of $66 million and accumulated depreciation of $34 million. The cash proceeds from the sale were $34 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 Net income 332 Proceeds from sale of equipment Increase in income taxes payable 0 Investing activities 332 Financing ads O 332 Beginning cash and cash equivalents Ending cash and cash equivalent $ 332

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