ARDUOUS COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in millions)
	2016		2015
Assets
Cash	$	116	$	81
Accounts receivable		190		194
Investment revenue receivable		6		4
Inventory		205		200
Prepaid insurance		4		8
Long-term investment		156		125
Land		196		150
Buildings and equipment		412		400
Less: Accumulated depreciation		(97)		(120)
Patent		30		32
	$	1,218	$	1,074
Liabilities
Accounts payable	$	50	$	65
Salaries payable		6		11
Bond interest payable		8		4
Income tax payable		12		14
Deferred income tax liability		11		8
Notes payable		23		0
Lease liability		82		0
Bonds payable		215		275
Less: Discount on bonds		(22)		(25)
Shareholders Equity
Common stock		430		410
Paid-in capitalexcess of par		95		85
Preferred stock		75		0
Retained earnings		242		227
Less: Treasury stock		(9)		0
	$	1,218	$	1,074

ARDUOUS COMPANY Income Statement For Year Ended December 31, 2016 ($ in millions)
Revenues and gain:
Sales revenue			$	410
Investment revenue				11
Gain on sale of treasury bills				2	$	423
Expenses and loss:
Cost of goods sold				180
Salaries expense				73
Depreciation expense				12
Patent amortization expense				2
Insurance expense				7
Bond interest expense				28
Loss on machine damage				18
Income tax expense				36		356
Net income					$	67

Additional information from the accounting records:
a.	Investment revenue includes Arduous Companys $6 million share of the net income of Demur Company, an equity method investee.
b.	Treasury bills were sold during 2016 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents.
c.	A machine originally costing $70 million that was one-half depreciated was rendered unusable by a flood. Most major components of the machine were unharmed and were sold for $17 million.
d.	Temporary differences between pretax accounting income and taxable income caused the deferred income 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.
h.	$60 million of bonds were retired at maturity.
i.	In February, Arduous issued a 4% stock dividend (4 million shares). The market price of the $5 par value common stock was $7.50 per share at that time. Also the company paid a cash dividend.
j.	In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million. required: Prepare Statement Cash Flow using the indirect method