What is the statement of cash flows using the indirect method? A comparative balance sheet and an income statement for Burgess Company are given below:Burgess CompanyComparative Balance Sheet(dollars in millions)Ending Balance Beginning BalanceAssetsCurrent assets:Cash and cash equivalentsAccounts receivable4695710651InventoryTotal current assets685638Property, plant, and equipmentLess accumulated depreciationNet property,plant, and equipment1,4411,5758121,3841,547672763875Total assets%242,2042,259Liabilities and Stockholders' EquityCurrent liabilities:Accounts payableAccrued liabilitiesIncome taxes payableTotal current liabilitiesBonds payable2741671871639179552409450670Total liabilities1,0021,079Stockholders' equity:Common stock180180Retained earningsTotal stockholders' equity1,0221,2021,0001,180Total liabilities and stockholders' equity $2,2042,259Burgess CompanyIncome Statement(dollars in millions)Sales$3,9102,6801,230Cost of goods soldGross marginSelling and administrative expensesNet operating incomeNonoperating items:Gain on sale of cquipmentIncome before taxes894336338Income taxes126Net income$ 212Burgess also provided the following information:1. The company sold equipment that had an original cost of $26 million and accumulated depreciation of $14million. The cash proceeds from the sale were $14 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:Using the indirect method, prepare a statement of cash flows for the year. (Enter your answers in millions not indollars. List any deduction in cash and cash outflows as negative amounts.)

Depreciation = Ending accumulated Depreciation - beginning accumulated Depreciation + accumulated Depreciation of assets sold = 812-672+14 = $154Burgess Company Cash Flow Statement(Indirect Method) Cash flows from operating activities: Net Income $212 Adjustments for: Depreciation and Amortization $154 Gain on sale of Equipment $-2 Increase in Accounts Receivable $-59 Increase in Inventory $-47 Increase in Accounts Payable $107 Increase in Accrued Liability $24 Increase in Income tax payable $12 $189 Cash flow from Operating activities $401 Cash flows from investing activities: Proceeds from sale of equipment $14 Purchase of equipment (1547-1575-26) $-54 Net cash used in investing activities $-40 Cash flows from financing activities: Dividends Paid (1022-212-1000) $-190 Repayment of bonds $-220 Net cash used in financing activities $-410 Net increase in cash and cash equivalents $-49 Cash and cash equivalents at beginning of period $95 Cash and cash equivalents at end of period $46