in w Lou r your Lawy . PC VUIULUI CUC lease payments of $8 million are paid at the beginning of each year starting January 1, 2018 h. $77 million of bonds were retired at maturity. L in February, Arduous issued a stock dividend (10.8 million shares). The market price of the $5 par per share at that time. Also the company paid a cash dividend J. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $26.00 Required: Prepare the statement of cash flows of Arduous Company for the year ended December 31, 2018. Pr activities by the direct method. (Do not round your Intermediate calculations. Enter your answers i be entered os 10.). Amounts to be deducted should be indicated with a minus slan.) ARDUOUS COMPANY Statement of Cash Flows For year ended December 31, 2018 (5 in millions) Cash flows from operating activities: Cash info From customers From investment revenue From sale of cash equivalents TI Cash outflows: To suppliers of goods To employees For insurance For bond interest For income taxes Net cash flows from operating activities Noncash investing and financing activities Additional information from the accounting records: a. Investment revenue includes Arduous Company's $23 million share of the net income of Demur Company, an equity method investee b. Treasury bills were sold during 2018 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents. c. A machine originally costing $104 million that was one-half depreciated was rendered unusable by a flood. Most major components of the machine were unharmed and were sold for $24 million d. Temporary differences between pretax accounting income and taxable income caused the deferred income tax liability to increase by $20 million e. The preferred stock of Tory Corporation was purchased for $42 million as a long-term investment f. Land costing $63 million was acquired by issuing $31 million cash and a 15%, 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, $99 million Annual lease payments of $8 million are paid at the beginning of each year starting January 1, 2018 h. $77 million of bonds were retired at maturity 1. In February, Arduous issued a stock dividend (10.8 million shares). The market price of the $5 par value common stock was $7.50 per share at that time. Also the company paid a cash dividend J. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $26.00 million Required: Prepare the statement of cash flows of Arduous Company for the year ended December 31, 2018. Present cash flows from operating activities by the direct method. (Do not round your Intermediate calculations. Enter your answers in millions (.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, 2018 (5 in millions) Cash flows from operating activities. Cash inflows From customers From investment revenue From sale of cash equivalents Cash outflows: The comparative balance sheets for 2018 and 2017 and the income statement for 2018 are given belo Additional information from Arduous's accounting records is provided also. ARDUOUS COMPANY Comparative Balance Sheets December 31, 2018 and 2017 (5 in millions) 142 207 228 Assets Cash Accounts receivable Investment revenue receivable Inventory Prepaid insurance Long-term investment 21 27 Land Buildings and equipment Less: Accumulated depreciation Patent (113) (154) 1,233 Liabilities Accounts payable Salaries payable Bond interest payable Income tax payable Deferred income tax liability Notes payable Lease liability Bonds payable Less: Discount on bonds Shareholders Equity Coron stock Pacin capital of par preferred stock Retained earnings Less Treasury stock MODUS COMPANY Income Statement For Year Ended December 31, 2018 (Sin millions) Revenues and gain! Sales revenue Investment revenue Gain on sale of treasury bills Expenses and loss Cost of goods sold Salaries expense Depreciation expense Patent amortization expence Insurance expense Bond interest expense Loss on machine damage Income tax expense et income Additional information from the accounting records a. Investment revenue includes Arduous Company's $23 million share of the net income of Demur Comp investee b. Treasury bills were sold during 2018 at again of $2 million Arduous Company classifies its investment equivalents c. A machine originally costing $104 million that was one-half depreciated was rendered unusable by a fi of the machine were unharmed and were sold for $24 million d. Temporary differences between pretax accounting income and taxable income caused the deferred in by $20 million e. The preferred stock of Tory Corporation was purchased for $42 million as a long-term Investment Lond costing $63 million was acquired by issuing $31 milion cash and 16 four-year $32 milion not