a.Investment revenue includes Orange Companys $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 million. Orange 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 $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.

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, Orange issued a 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 of Orange Company for the year ended December 31, 2024. Present cash flows from operating activities by the direct method. (A reconciliation schedule is not required.)

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. 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 1iability Notes payable Lease 11ab111 ty Bonds payable Less: Discount on bonds Shareholders' Equity Common atock Paidmin capital-excess of par Preferred atoek Retained earnings Lessi Treasury stock \begin{tabular}{rr} 205 & 200 \\ 4 & 8 \\ 156 & 125 \\ 196 & 150 \\ 412 & 400 \\ (97) & (120) \\ 30 & 32 \\ \hline$1,211 & $1,074 \\ \hline \end{tabular} $ 50 $6511414800275 (22) (25) \begin{tabular}{rr} 430 & 410 \\ 95 & 85 \\ 75 & 0 \\ 242 & 227 \\ (9) & 0 \\ \hline$1,211 & $1,074 \\ \hline \end{tabular} ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 (\$ in m1111ons) 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 classifles its investments in Treasury bilts 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 oreferred stock of Torv Corporation was burchased for $25 million as a lona-term investment