219 The comparative balance sheets for 2021 and 2020 and the income statement for 2021 are given below for Arduous Company. Additional information from Arduous's accounting records is provided also. ARDUOUS COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2e2e Assets Cash $ 324 $ 180 Accounts receivable 209 213 Investment revenue receivable 25 23 Inventory 224 Prepaid insurance 23 27 Long-term investment 156 125 Land 215 169 Buildings and equipment 509 419 Less: Accumulated depreciation (116) (139) Patent 67 69 $ 1,636 $ 1,225 Liabilities Accounts payable $ 69 $ 103 Salaries payable 25 3e Interest payable (bonds) 27 23 Income tax payable 31 33 Deferred tax liability 27 Notes payable 23 4 30 a 23 153 234 (23) e 294 (26) 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 430 154 94 398 (9) $ 1,636 410 142 e 189 $ 1,225 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 ($ in millions) Revenues and gain: Sales revenue Investment revenue Gain on sale of treasury bills Expenses and loss: Cost of goods sold Salaries expense Depreciation expense Amortization expense Insurance expense $ 715 68 2 $ 785 199 92 12 2 26 Insurance expense Interest expense Loss on sale of equipment Income tax expense Net income 26 47 21 55 454 $ 331 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 2021 at a gain of $2 million Arduous Company classifies its investments in 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 $14 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. $160 million Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2021 15-year lease agreement: present value of lease payments, $160 million Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2021 h. $60 million of bonds were retired at maturity i. In February, Arduous issued a stock dividend (4 million shares). The market price of the $5 par value commo stock was $8 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 Prepare the statement of cash flows for Arduous Company. Use the T-account method to assist in your analysis. (Enter you in millions (l.e., 10,000,000 should be entered as 10.). Amounts to be deducted should be indicated with a minus sign.) ARDUOUS COMPANY Statement of Cash Flows For year ended December 31, 2021 (s in millions) Cash flows from operating activities: Cash inflows Cash outflows Required information Cash outflows Net cash flows from operating activities Cash flows from investing activities: $ 0 Net cash flows from investing activities Cash flows from financing activities: Required information Ner cash flows from investing activities Cash flows from financing activities: u 0 Net cash flows from financing activities Net increase in cash Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities: $ 0