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The comparative balance sheets for 2021 and 2020 are given below for Surmise Company. Net income for 2021 was $56 million SURHISE COMPANY Comparative Balance Sheets December 31, 2021 and 2020 (5 in millions) 2021 2020 Assets Cash $ 43 $50 Accounts receivable 77 Less: Allowance for uncollectible accounts (12) Prepaid expenses 8 Inventory 180 Lone-term investment 57 Land 74 Buildings and equipment 306 Less: Accumulated depreciation (100) Patent 12 5645 Liabilities Accounts payable 5 6 12 Accrued liabilities 4 Notes payable 24 Lease liability 86 Bonds payable 52 Shareholders Equity Common stock 57 Paid in capital-excess of par 245 Retained earnings 172 $.645 326283398**** 299) Required: Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2021. Use the Indirect method to present cash flows from operating activities because you do not have sufficient Information to use the direct method. You will need to make reasonable assumptions concerning the reasons for changes in some account balances. A spreadsheet or T-account analysts will be helpful. (Hint: The right to use a building was acquired with a seven-year lease agreement Annual lease payments of $10 million are pald at January 1 of each year starting in 2021) (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 slgn.) SURMISE COMPANY Statement of Cash Flows For year ended December 31, 2021 15 in millions) Cash flows from operating activities Net income Adjustments for noncash effects Depreciation expense Bad debt expense Amortization expense 56 14 Changes in operating assets and abilities Decrease in accounts receivable Increase in Inventory Decrease in accounts payable Increase in prepaid expenses Decrease in scrued abilities Net cash flows from operating activities 70 Changes in operating assets and liabilities: Decrease in accounts receivable Increase in inventory Decrease in accounts payable Increase in prepaid expenses Decrease in accrued liabilities 70 Net cash flows from operating activities Cash flows from investing activities: Purchase of long-term investment O Net cash flows from investing activities Cash flows from financing activities: Payment of lease liability Issuance of notes payable Retirement of bonds payable Sale of common stock Payment of dividends 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. Acquired use of buildings by lease $ 0