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$ 530 16 6 $ 552 NATIONAL INTERCABLE COMPANY Income Statement For Year Ended December 31, 2018 ($ in millions) Revenues Sales revenue Investment revenue
$ 530 16 6 $ 552 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 240 74 45 3 8 38 50 52 510 42 34 $ 8 Additional information from the accounting records a. Investment revenue includes National Intercable Company's $4 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 $48 million, was sold for $54 million c. Pretax accounting income exceeded taxable income causing the deferred income tax liability to increase by $6 million d. A building that originally cost $76 million, and which was one-fourth depreciated was destroyed by fire Some undamaged parts were sold for $5 million e. The right to use a building was acquired with a seven-year lease agreement, present value of lease payments, $100 million Annual lease payments of $12 million are paid at Jan 1 of each year starting in 2018 f. $180 million of bonds were retired at maturity g $20 million par value of common stock was sold for $40 million, and $50 million of preferred stock was sold at par h. Shareholders were paid cash dividends of $34 million Required: 2. Prepare the statement of cash flows Present cash flows from operating activities by the direct method (Enter your answers in millions (i.e., 10.000.000 should be entered as 10.). Amounts to be deducted should be indicated with a minus sign.) 25 of 39
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