Direct Method.

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. 2029 $ 92 216 ARDUOUS COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 Assets Cash $ 131 Accounts receivable Investment revenue receivable Inventory Prepaid insurance Long-term investment Land 218 Buildings and equipment 423 Less: Accumulated depreciation (107) Patent 43 $1,349 Liabilities Accounts payable 61 Salaries payable Interest payable (bonds) Income tax payable. Deferred tax liability Notes payable Lease liability Bonds payable 226 Less: Discount on bonds (33) Shareholders' Equity Common stock 463 Paid-in capital-excess of par 117 Preferred stock 86 Retained earnings 242 Less: Treasury stock (20) $1,349 $1 221 $1,179 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 (s in millions) Revenues and gain: Sales revenue $520 Investment revenue Gain on sale of Treasury bills Expenses and loss : Cost of goods sold Salaries expense Depreciation expense Amortization expense Insurance expense Interest expense Loss on sale of equipment Income tax expense Net income Additional information from the accounting records a. Investment revenue includes Arduous Company's $17 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 classifies its investments in Treasury bills as cash equivalents. c. Equipment originally costing 592 million that was one-half depreciated was rendered unusable by a flood. Most major components or the equipment were unharmed and were sold for $22 million d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $14 million. e. The preferred stock of Tory Corporation was purchased for $36 million as a long-term investment Land costing $57 million was acquired by Issuing $28 million cash and a 14% four year. $29 million note payable to the seller Thenght to use a building was acquired with a 15 year lease agreement, present value of lease payments. $93 million Annual Tease payments of $7 million are paid at the beginning of each year starting January 1, 2020 $71 million of bonds were retired at maturity. I in February, Arduous issued dividend (8.4 million shares). The market price of the 35 par value common stock was $750 per share at that time Jin Apr, 1 million shares of common stock were repurchased as treasury stock at a cost of $20.00 million Statement of Cash Flows For year ended December 31, 2021 (5 in millions) Cash flows from operating activities: Cash inflows: Cash outflows: Nel cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities Net cash flows from financing activities Net increase (decrease in cash Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities Additional Information from the accounting records a. Investment revenue includes Arduous Company's $17 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 classifies its Investments in Treasury bills as cash equivalents. c. Equipment onginally costing $92 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $22 million d. Temporary differences between pretax accounting Income and taxable income caused the deferred tax liability to increase by $14 million e. The preferred stock of Tory Corporation was purchased for $36 million as a long-term Investment. Land costing $57 million was acquired by Issuing $28 million cash and a 14%, four-year, $29 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, 593 million Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2021. h. $71 million of bonds were retired at maturity. In February, Arduous issued dividend (8.4 million shares). The market price of the $5 par value common stock was $750 per share at that time. J. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $20.00 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 (Le., 10,000,000 should be entered as 10.). Amounts to be deducted should be Indicated with a minus sign.)