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The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for National Intercable Company. Additional information from NIC's accounting records is provided also. 2017 $75 190 230 (65) NATIONAL INTERCABLE COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) 2018 Assets Cash $ 96 Accounts receivable 222 Less: Allowance for uncollectible accounts (9) Prepaid insurance 9 Inventory 204 Long-term investment 34 Land Buildings and equipment 268 Less: Accumulated depreciation (82) Trademark $ 966 Liabilities Accounts payable 34 Salaries payable Deferred income tax liability Lease liability Bonds payable 135 Less: Discount on bonds (20) Shareholders' Equity Common stock 260 Paid-in capital-excess of par 95 Preferred stock Retained earnings 334 $ 966 $ 936 $ 46 265 230 65 S@ 333 936 $ 310 4 $328 130 NATIONAL INTERCABLE COMPANY Income Statement For Year Ended December 31, 2018 ($ in millions) Revenues Sales revenue Investment revenue Gain on sale of investments Expenses Cost of goods sold Salaries expense Depreciation expense Trademark amortization expense Bad debt expense Insurance expense Bond interest expense Loss on building fire Income before tax Income tax expense Net income 35 21 289 Additional information from the accounting records: a. Investment revenue includes National Intercable Company's $5 million share of the net income of Central Fiber Optics Corporation, an equity method investee. b. A long-term investment in bonds, originally purchased for $26 million, was sold for $30 million, c. Pretax accounting income exceeded taxable income causing the deferred income tax liability to increase by $3 million. d. A building that originally cost $32 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged parts were sold for $3 million e. The right to use a building was acquired with a seven-year lease agreement: present value of lease payments, $70 million. Annual lease payments of $13 million are paid at Jan. 1 of each year starting in 2018. 1. $130 million of bonds were retired at maturity g. $30 million par value of common stock was sold for $60 million, and $50 million of preferred stock was sold at par h. Shareholders were paid cash dividends of $15 million Required: 2. Prepare the statement of cash flows. Present cash flows from operating activities by the direct method. (Enter your answers in millions file 10 On should be entered a 101 Amount the deducted should he indicated with a NATIONAL INTERCABLE COMPANY Statement of Cash Flows For year ended December 31, 2018 ($ in millions) Cash inflows: Cash outflows: the presented in the US Noncash investing and financing activities