ARDUOUS COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 $ $ Assets Cash Accounts receivable Investment revenue receivable Inventory Prepaid insurance Long-term investment Land Buildings and equipment Less: Accumulated depreciation Patent 113 192 10 209 8 164 200 414 (100) 34 83 198 6 202 12 127 152 404 (124) 38 $ 1,244 $ 1,098 $ 52 $ 10 12 14 69 13 6 18 10 15 Liabilities Accounts payable Salaries payable Interest payable (bonds) Income tax payable Deferred tax liability 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 24 77 217 (24) 0 279 (26) 436 99 77 246 (11) $ 1,244 412 87 0 230 0 $ 1,098 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 ($ in millions) Revenues and gain: Sales revenue $ 425 Investment revenue 16 Gain on sale of Treasury bills 4 $ 445 Expenses and loss: Cost of goods sold 182 Salaries expense 75 Depreciation expense 13 Amortization expense 4 Insurance expense 9 Interest expense 30 Loss on sale of equipment 22 Income tax expense 38 373 Net income $ 72 Additional information from the accounting records: a. Investment revenue includes Arduous Company's $10 million share of the net income of Demur Company, an equity method investee. b. Treasury bills were sold during 2021 at a gain of $4 million. Arduous Company classifies its investments in Treasury bills as cash equivalents. c. Equipment originally costing $74 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $15 million. d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $5 million. e. The preferred stock of Tory Corporation was purchased for $27 million as a long-term investment. f. Land costing $48 million was acquired by issuing $24 million cash and a 12%, four-year, $24 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, $84 million. Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2021. h. $62 million of bonds were retired at maturity. i. In February, Arduous issued dividend (4.8 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 $11.00 million. Required: Prepare the statement of cash flows of Arduous Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10.). Amounts to be deducted should be indicated with a minus sign.) ARDUOUS COMPANY Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities: Cash inflows: Cash outflows: Net cash flows from operating activities $ 0 Cash flows from investing activities: 0 Net cash flows from investing activities Cash flows from financing activities: 0 0 Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities: $ 0