Question

A comparative balance sheet and an income statement for BurgessCompany are given below:

Burgess Company Comparative Balance Sheet (dollars in millions)
	Ending Balance		Beginning Balance
Assets
Current assets:
Cash and cash equivalents	$	49	$	79
Accounts receivable		645		580
Inventory		660		615
Total currentassets		1,354		1,274
Property, plant, andequipment		1,515		1,466
Less accumulated depreciation		765		641
Net property,plant,and equipment		750		825
Totalassets	$	2,104	$	2,099
Liabilitiesand Stockholders' Equity
Currentliabilities:
Accounts payable	$	250	$	155
Accrued liabilities		190		165
Income taxes payable		76		70
Total currentliabilities		516		390
Bonds payable		450		620
Totalliabilities		966		1,010
Stockholders'equity:
Common stock		161		161
Retained earnings		977		928
Total stockholders'equity		1,138		1,089
Total liabilitiesand stockholders' equity	$	2,104	$	2,099

Burgess Company Income Statement (dollars in millions)
Sales	$	3,600
Cost of goodssold		2,550
Gross margin		1,050
Selling andadministrative expenses		875
Net operatingincome		175
Nonoperating items:Gain on sale of equipment		3
Income beforetaxes		178
Income taxes		63
Net income	$	115

Burgess also provided the following information:

1.	The company sold equipment that had an original cost of $13million and accumulated depreciation of $8 million. The cashproceeds from the sale were $8 million. The gain on the sale was $3million.
2.	The company did not issue anynew bonds during the year.
3.	The company paid a cash dividendduring the year.
4.	The company did not complete anycommon stock transactions during the year.

Required:
1.	Using the indirect method, prepare a statement of cash flows forthe year. (Enter your answers in millions not in dollars .List any deduction in cash and cash outflows as negativeamounts.)