Blankley Company Comparative Balance Sheet (dollars in millions) Ending Balance Beginning Balance Assets Current assets

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



Blankley Company Comparative Balance Sheet (dollars in millions) Ending Balance Beginning Balance Assets Current assets: Cash and cash equivalents $ 39 $ 81 Accounts receivable 640 588 Inventory 650 610 Total current assets 1,329 1,279 Property,plant, and equipment 1,505 1,484 Less accumulated depreciation 770 651 Net property, plant, and equipment 735 833 Total assets $ 2,064 $ 2,112 Liabilities and Stockholders\' Equity Current liabilities: Accounts payable $ 260 $ 160 Accrued liabilities 180 170 Income taxes payable 77 72 Total current liabilities 517 402 Bonds payable 415 600 Total liabilities 932 1,002 Stockholders\' equity: Common stock 145 145 Retained earnings 987 965 Total stockholders\' equity 1,132 1,110 Total liabilities and stockholders\' equity $ 2,064 $ 2,112


Blankley Company Income Statement (dollars in millions) Sales $ 3,700 Cost of goods sold 2,540 Gross margin 1,160 Selling and administrative expenses 880 Net operating income 280 Nonoperating items: Gain on sale of equipment 2 Income before taxes 282 Income taxes 112 Net income $ 170


Blankley also provided the following information:



1.
The company sold equipment that had an original cost of $12 million and accumulated depreciation of $7 million. The cash proceeds from the sale were $7 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 should be indicated with a minus sign. Omit the \"$\" sign in your response.)



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