Refer to the data provided in the P 21–11 for Arduous Company.

Data from in P 21-11

The comparative balance sheets for 2024 and 2023 and the income statement for 2024 are given below for Arduous Company. Additional information from Arduous’s accounting records is provided also.

Additional information from the accounting records:
a. Investment revenue includes Arduous Company’s $6 million share of the net income of Demur Company, an equity method investee.
b. Treasury bills were sold during 2024 at a gain of $2 Treasury bills as cash equivalents.

c. Equipment originally costing $70 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $17 million.
d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $3 million.
e. The preferred stock of Tory Corporation was purchased for $25 million as a long-term investment.
f. Land costing $46 million was acquired by issuing $23 million cash and a 15%, four-year, $23 million note payable to the seller.
g. The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $82 million. Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2024.
h. $60 million of bonds were retired at maturity.
i. In February, Arduous issued a 5% stock dividend (4 million shares). The market price of the $5 par value common stock was $7.50 per share at that time.
j. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million.

Required:
Prepare the statement of cash flows for Arduous Company. Use the T-account method to assist in your analysis.

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Assets Cash ARDUOUS COMPANY Comparative Balance Sheets December 31, 2024 and 2023 ($ in millions) Accounts receivable Investment revenue receivable Inventory Prepaid insurance Long-term investment Land Buildings and equipment Less: Accumulated depreciation Patent Liabilities Accounts payable Salaries payable Interest payable (bonds) Income tax payable Deferred tax liability Notes payable Lease liability Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Preferred stock Retained earnings Less: Treasury stock 2024 $ 109 190 6 205 4 156 196 412 (97) 30 $1,211 $ 50 6 8 12 11 23 75 75 215 (22) 430 95 75 242 (9) $1,211 2023 $ 81 194 4 200 8 125 150 400 (120) 32 $1,074 $ 65 11 4 14 8 0 0 275 (25) 410 85 0 227 0 $1,074