Check my work 7 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. 25 points ARDUOUS COMPANY Comparative Balance sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 eBook Assets Cash Accounts receivable Investment revenue receivable Inventory Prepaid insurance Long-term investment Land Buildings and equipment Lesa: Accumulated depreciation Patent Print $ 145 s 99 208 230 26 22 226 218 24 31 212 143 232 168 430 436 (115) (156) 49 53 $ 1,437 $ 1,244 References $ Liabilities Accounts payable Salaries payable Interest payable (bonds) Income tax payable Deferred tax liability Notes payable Lease liability Bands payable Less: Discount on bonds Shareholders' Equity Comon stock Paid-in capital-excess of par Preferred stock Retained earnings Less: Treasury stock 68 $ 26 28 30 47 32 93 233 (40) 101 36 22 36 26 D D 311 (44) 494 428 131 103 93 0 239 225 (27) D $ 1,437 $ 1,244 Check my work 7 25 points ARDUOUS COMPANY Income Statement Por Year Ended December 31, 2021 ($ in millions) Revenues and gain: Sales revenue $ 582 Investment revenue 32 Gain on sale of Treasury bills 4 $618 Expenses and loss: Cost of goods sold 198 Salaries expense 91 Depreciation expense 12 Amortization expense 4 Insurance expense 25 Interest expense 46 Loss on sale of equipment 35 Income tax expense 54 465 Net income S 153 100 eBook Print References Additional Information from the accounting records: a. Investment revenue includes Arduous Company's $26 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 $106 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $18 million. d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $21 million. e. The preferred stock of Tory Corporation was purchased for $43 million as a long-term investment. f. Land costing $64 million was acquired by issuing $32 million cash and a 10%, four-year, $32 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, $100 million. Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2021. h. $78 million of bonds were retired at maturity. i. In February, Arduous issued dividend (11.2 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 $27.00 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.) 25 points ARDUOUS COMPANY Statement of Cash Flows For year ended December 31, 2021 (5 in millions) Cash flows from operating activities: Cash Inflows: Book Print References Cash outflows: $ 0 Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities