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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 Balance		Beginning Balance
Assets
Current assets:
Cash and cash equivalents	$	62	$	127
Accounts receivable		870		795
Inventory		765		702
Total current assets		1,697		1,624
Property, plant, and equipment		1,735		1,691
Less accumulated depreciation		908		720
Net property,plant, and equipment		827		971
Total assets	$	2,524	$	2,595
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	306	$	183
Accrued liabilities		203		147
Income taxes payable		123		95
Total current liabilities		632		425
Bonds payable		530		830
Total liabilities		1,162		1,255
Stockholders' equity:
Common stock		260		260
Retained earnings		1,102		1,080
Total stockholders' equity		1,362		1,340
Total liabilities and stockholders' equity	$	2,524	$	2,595

Burgess Company Income Statement (dollars in millions)
Sales	$	4,390
Cost of goods sold		3,000
Gross margin		1,390
Selling and administrative expenses		926
Net operating income		464
Nonoperating items: Gain on sale of equipment		2
Income before taxes		466
Income taxes		158
Net income	$	308

Burgess also provided the following information:

1.	The company sold equipment that had an original cost of $58 million and accumulated depreciation of $30 million. The cash proceeds from the sale were $30 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.

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