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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	$	63	$	129
Accounts receivable		880		804
Inventory		770		706
Total current assets		1,713		1,639
Property, plant, and equipment		1,745		1,700
Less accumulated depreciation		914		723
Net property,plant, and equipment		831		977
Total assets	$	2,544	$	2,616
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	308	$	184
Accrued liabilities		204		146
Income taxes payable		125		96
Total current liabilities		637		426
Bonds payable		535		840
Total liabilities		1,172		1,266
Stockholders' equity:
Common stock		265		265
Retained earnings		1,107		1,085
Total stockholders' equity		1,372		1,350
Total liabilities and stockholders' equity	$	2,544	$	2,616

Burgess Company Income Statement (dollars in millions)
Sales	$	4,420
Cost of goods sold		3,020
Gross margin		1,400
Selling and administrative expenses		928
Net operating income		472
Nonoperating items: Gain on sale of equipment		2
Income before taxes		474
Income taxes		160
Net income	$	314

Burgess also provided the following information: 1. The company sold equipment that had an original cost of $60 million and accumulated depreciation of $31 million. The cash proceeds from the sale were $31 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 1. 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: Adjustments to convert net income to cash basis: Investing activities: Financing activities Beginning cash and cash equivalents Ending cash and cash equivalents

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