Prepare the statement of cash flows of Orange Company using the direct method to report operating activities.

ORANGE COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) 2017 2018 Assets Cash S 43 38 14 Petty cash 11 Accounts receivable 33 38 Allowance for uncollectible accounts (8) (10) Investment in A Corp 20 0 Investment in B Inc 15 37 34 Inventory Prepaid insurance 6 8 Supplies Land Building 15 11 80 100 160 160 Less: Accumulated depreciation Equipment Less: Accumulated depreciation (32) (40) 90 75 (30) (35) S 423 410 Liabilities Accounts payable Salaries payable Interest payable Note payable 29 32 8 4 4 3 180 160 Owner's Equity Owner's contribution 130 165 Capital 59 79 Withdrawal (20) S 423 410 ORANGE COMPANY Income Statement For Year Ended December 31, 2018 ($ in millions) Revenues Sales revenue 222 Gain on sale of land 22 S 244 Expenses Cost of goods sold Bad debt expense 48 4 Insurance expense 34 Supplies expense Depreciation expense Salaries expense 42 23 38 Interest expense Utilities expenses Income from operations 9 18 216 28 Other income and expenses Loss on sale of equipment (3) Loss on sale of Investment A (5) Total other income and expenses (81 20 Net income Additional information from the accounting records: a) Equipment that originally cost $19 and had a book value of $9 was sold b) The building has a life of 20 years c) The equipment has a life of 5 years d) Land that originally cost $18 was sold olm an co m s