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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	$	51	$	105
Accounts receivable		760		696
Inventory		710		658
Total current assets		1,521		1,459
Property, plant, and equipment		1,625		1,592
Less accumulated depreciation		842		687
Net property,plant, and equipment		783		905
Total assets	$	2,304	$	2,364
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	284	$	172
Accrued liabilities		192		158
Income taxes payable		101		84
Total current liabilities		577		414
Bonds payable		475		720
Total liabilities		1,052		1,134
Stockholders' equity:
Common stock		205		205
Retained earnings		1,047		1,025
Total stockholders' equity		1,252		1,230
Total liabilities and stockholders' equity	$	2,304	$	2,364

Burgess Company Income Statement (dollars in millions)
Sales	$	4,060
Cost of goods sold		2,780
Gross margin		1,280
Selling and administrative expenses		904
Net operating income		376
Nonoperating items: Gain on sale of equipment		2
Income before taxes		378
Income taxes		136
Net income	$	242

Burgess also provided the following information:

1.	The company sold equipment that had an original cost of $36 million and accumulated depreciation of $19 million. The cash proceeds from the sale were $19 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. bugens company statement cash of flow operating activites net income 242 adjustments to convert net income to cash basis depreciation increase in accounts receivable increas in inventory increae in accounts payable increase in accrued liability increase in income tax payable gain on sale of equipment net cash provided by operations activities investing activities procceds from sale of equipment additions to plant and equipments net cash used in activities financing activities retirements of bonds payable cash dividends net cash use in financing activities beggining cash ending cash

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