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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	$	67	$	137
Accounts receivable		920		840
Inventory		790		722
Total current assets		1,777		1,699
Property, plant, and equipment		1,785		1,736
Less accumulated depreciation		938		735
Net property,plant, and equipment		847		1,001
Total assets	$	2,624	$	2,700
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	316	$	188
Accrued liabilities		208		142
Income taxes payable		133		100
Total current liabilities		657		430
Bonds payable		555		880
Total liabilities		1,212		1,310
Stockholders' equity:
Common stock		285		285
Retained earnings		1,127		1,105
Total stockholders' equity		1,412		1,390
Total liabilities and stockholders' equity	$	2,624	$	2,700

Burgess Company Income Statement (dollars in millions)
Sales	$	4,540
Cost of goods sold		3,100
Gross margin		1,440
Selling and administrative expenses		936
Net operating income		504
Nonoperating items: Gain on sale of equipment		2
Income before taxes		506
Income taxes		168
Net income	$	338

Burgess also provided the following information:

1.	The company sold equipment that had an original cost of $68 million and accumulated depreciation of $35 million. The cash proceeds from the sale were $35 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.)

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