Is it correct? What is the acquired equipment? 110 or 97?

The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for National Intercable Company. Additional information from NIC's accounting records is provided also. AL INTERCABLE COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) 2018 2017 Assets $ 154 404 $ 135 395 Cash Accounts receivable Less: Allowance for uncollectible (6) (8) counts Prepaid insurance Inventory Long-term investment Land 8 13 384 375 70 115 260 390 260 Buildings and equipment Less: Accumulated depreciation 360 (125) 20 (155) Trademark 18 $1,525 $1,542 Liabilities Accounts payable Salaries payable Deferred income tax liability Lease liability Bonds payable 70 51 4 7 19 16 97 0 325 (36) 155 Less: Discount on bonds (31) Shareholders' Equity 360 130 Common stock 390 Paid-in capital-excess of par Preferred stock Retained earnings 140 60 0 670 640 $1,525 $1,542 NATIONAL INTERCABLE COMPANY Income Statement For Year Ended December 31, 2018 ($ in millions) Revenues 550 Sales revenue Investment revenue 17 5 $572 Gain on sale of investments Expenses Cost of goods sold Salaries expense Depreciation expense Trademark amortization expense Bad debt expense Insurance expense Bond interest expense Loss on building fire Income before tax 250 75 50 2 6 40 55 532 54 40 35 Income tax expense 5 Net income Additional information from the accounting records: a. Investment revenue includes National Intercable Company's $5 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 $50 million, was sold for $55 million. c. Pretax accounting income exceeded taxable income causing the deferred income tax liability to increase by $3 million. d. A building that originally cost $80 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged parts were sold for $6 million. e. The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $110 million. Annual lease payments of $13 million are paid at Jan. 1 of each year starting in 2018 f. $170 million of bonds were retired at maturity. g. $30 million par value of common stock was sold for $40 million, and $60 million of preferred stock was sold at par. h.Shareholders were paid cash dividends of $35 million Required: 2. Prepare the statement of cash flows. Present cash flows from operating activities by the direct method. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10.). Amounts to be deducted should be indicated witha minus sign.) NATIONAL INTERCABLE COMPANY Statement of Cash Flows For year ended December 31, 2018 (S in millions) Cash flows from operating activities: Cash inflows: From customers $ 537 From investment revenue 12 Cash outflows: To suppliers of goods (278) To employees (78) For insurance (35) For income taxes (32) For bond interest (50) Net cash flows from operating activities 76 Cash flows from investing activities: 6 Sale of building parts Sale of long-term investment 55 Net cash flows from investing activities 61 Cash flows from financing activities: (13) Payment on lease liability Retirement of bonds payable (170) Sale of common stock 40 Sale of preferred stock 60 Payment of cash dividends (35) Net cash flows from financing activities (118) Net increase in cash 19 Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities: 135 $ 154 $ 110 Acquired equipment