Holmes Company reported the following balance sheets at December 31, 2017 and 2018:

Its income statement for 2018 was as follows:
($ in millions)
Sales.............................................$1,000
Cost of sales.......................................(670)
Depreciation.......................................(30)
Other operating expenses.......................(100)
Income before taxes..............................200
Income taxes.......................................(70)
Net income.......................................$ 130
Additional information:
During 2018, Holmes had the following transactions:
a. Declared and paid a common dividend of $50 million.
b. Purchased additional fixed assets, but did not sell any.
c. Issued $30 million of new debt.
d. Paid interest on all its debt, and included the interest in Other operating expenses.
e. Repurchased common shares, but did not issue any.
Required:
Prepare a cash flow statement for Holmes for 2018, using the indirect method to present the operating section. Use the worksheet approach described in the appendix to this chapter to construct the cash flow statement.

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December 31 ($ in millions) Cash Accounts receivable Inventory Fixed assets Accumulated depreciation Total assets 2018 S 45 170 250 500 (150) $815 2017 $ 40 175 230 400 (120) 725 Accounts payable Long-term debt Common stock Retained earnings Treasury stock 100 455 50 280 (70) $ 80 50 200 (30) 725 Total liabilities and stockholders' equity 815