Assets Cash December 31, 2021 and 2020 ($ in millions) 2020 $ 70 2021 $ 876 220 60 296 $ 876 , Accounts receivable Less: Allowance for uncollectible accounts Prepaid insurance Inventory Long-term investment Land Buildings and equipment Less: Accumulated depreciation Trademark Liabilities Accounts payable Salaries payable Deferred tax liability Lease liability Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Preferred stock Retained earnings Revenues NATIONAL INTERCABLE COMPANY Income Statement For Year Ended December 31, 2021 ($ in millions) Sales revenue Investment revenue Gain on sale of investments Expenses Cost of goods sold Salaries expense Depreciation expense Amortization expense Bad debt expense Insurance expense Interest expense Loss on sale of building Income before tax Income tax expense Net income 4 $ 306 268 38 27 $ 11 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 $24 million, was sold for $28 million. c. Pretax accounting income exceeded taxable income, causing the deferred income tax liability to increase by $2 million. d. A building that originally cost $28 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged sections were sold for $2 million. e. The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $60 million. Annual lease payments of $7 million are paid at Jan. 1 of each year starting in 2021. f. $120 million of bonds were retired at maturity. g. $20 million par value of common stock was sold for $50 million, and $40 million of preferred stock was sold at par. h. Shareholders were paid cash dividends of $14 million. Required: 2. Prepare the statement of cash flows. Present cash flows from operating activities by the direct method. (Enter your answers In millions (l.e., 10,000,000 should be entered as 10.). Amounts to be deducted should be Indicated with a minus sign.) NATIONAL INTERCABLE COMPANY Statement of Cash Flows For the year ended December 31, 2021 Cash flows from operating activities: Cash inflows: From customers From investment revenue ($ in millions) $ 277 8 Cash outflows: To suppliers of goods To employees For insurance expense For interest expense For income taxes Net cash flows from operating activities Cash flows from investing activities: Sale of building Sale of long-term investment Net cash flows from investing activities Cash flows from financing activities: Retirement of bonds payable Sale of common stock Sale of preferred stock Payment on lease liability Payment of dividends Net cash flows from financing activities Net increase (decrease) in cash 285 0 0 285 Cash balance, January 1 Cash balance, December 31 $ 285 Noncash investing and financing activities: