Please complete the following question. There's a chart to it as well. Thank you.
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. NATIONAL INTERCABLE COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) 2018 2017 Assets Cash 5 114 S 100 Accounts receivable 297 290 Less: Allowance for uncollectible (9) (7) accounts Prepaid insurance 5 10 Inventory 279 270 Longterm investment 52 80 Land 190 190 Buildings and equipment 318 290 Less: Accumulated depreciation (127) (90) Trademark 34 35 $1,153 $1,168 Liabilities Accounts payable $ 39 $ 56 Salaries payable 4 6 Deferred income tax liability 22 18 Lease liability 68 0 Bonds payable 110 290 Less: Discount on bonds (26) (29) Shareholders' Equity Common stock 310 280 Paid-in capitalexcess of par 115 95 Preferred stock 60 0 Retained earnings 451 452 $1,153 $1,168 NATIONAL INTERCABLE COMPANY Income Statement For Year Ended December 31, 2018 ($ in millions) Revenues Sales revenue $440 Investment revenue 16 Gain on sale of investments 4 $460 Expenses Cost of goods sold 180 Salaries expense 64 Depreciation expense 50 Trademark amortization expense 1 Bad debt expense 8 Insurance expense 26 Bond interest expense 45 Loss on building fire 35 409 Income before tax 51 Income tax expense 28 Net income 5 23 Additional information from the accounting records: a. Investment revenue includes National Intercable Company's $8 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 $36 million, was sold for $40 million. c. Pretax accounting income exceeded taxable income causing the deferred income tax liability to increase by $4 million. d. A building that originally cost $52 million, and which was one-fourth depreciated, was destroyed by re. Some undamaged parts were sold for $4 million. e. The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $80 million. Annual lease payments of $12 million are paid at Jan. 1 of each year starting in 2018. f. $180 million of bonds were retired at maturity. 9. $30 million par value of common stock was sold for $50 million, and $60 million of preferred stock was sold at par. h. Shareholders were paid cash dividends of $24 million. Required: 2. Prepare the statement of cash flows. Present cash flows from operating activities by the direct method. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10.). Amounts to be deducted should be indicated with a minus sign.) NATIONAL INTERCABLE COMPANY Statement of Cash Flows For year ended December 31, 2018 ($ in millions) Cash inflows: Cash outflows: $ 0 0 0 $ 0 Noncash investing and financing activities
