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A comparative balance sheet and an income statement for Blankley Company are presented below:

Blankley Company Comparative Balance Sheet (dollars in millions)
	Ending Balance		Beginning Balance
Assets
Current assets:
Cash and cash equivalents	$	60	$	123
Accounts receivable		850		777
Inventory		755		694
Total current assets		1,665		1,594
Property, plant, and equipment		1,715		1,673
Less accumulated depreciation		896		714
Net property, plant, and equipment		819		959
Total assets	$	2,484	$	2,553
Liabilities and Stockholders' equity
Current liabilities:
Accounts payable	$	302	$	181
Accrued liabilities		201		149
Income taxes payable		119		93
Total current liabilities		622		423
Bonds payable		520		810
Total liabilities		1,142		1,233
Stockholders' equity:
Common stock		250		250
Retained earnings		1,092		1,070
Total stockholders' equity		1,342		1,320
Total liabilities and stockholders' equity	$	2,484	$	2,553

Blankley Company Income Statement (dollars in millions)
Sales	$	4,330
Cost of goods sold		2,960
Gross margin		1,370
Selling and administrative expenses		922
Net operating income		448
Nonoperating items: Gain on sale of equipment		2
Income before taxes		450
Income taxes		154
Net income	$	296

Blankley also provided the following information:

1.	The company sold equipment that had an original cost of $54 million and accumulated depreciation of $28 million. The cash proceeds from the sale were $28 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. Amounts to be deducted and negative amounts should be indicated with a minus sign.)

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