Problem $21-11($Algo$)$ Prepare a statement of cash flows; direct method $[$LO$21-3,21-8]$

The comparative balance sheets for $2024$ and $2023$ and the income statement for $2024$ are given below for Arduous Company. Additional information from Arduous$$s accounting records is provided also.

ARDUOUS COMPANY

Comparative Balance Sheets

December $31,2024$ and $2023$

$($$ in millions$)$

$20242023$

Assets

Cash $ $119$ $ $86$

Accounts receivable $195204$

Investment revenue receivable $129$

Inventory $213205$

Prepaid insurance $1018$

Long$-$term investment $172130$

Land $206155$

Buildings and equipment $417410$

Less: Accumulated depreciation $(99)(130)$

Patent $3437$

$ $1,279$ $ $1,124$

Liabilities

Accounts payable $ $55$ $ $75$

Salaries payable $1221$

Interest payable $($bonds$)149$

Income tax payable $1719$

Deferred tax liability $2113$

Notes payable $260$

Lease liability $800$

Bonds payable $220285$

Less: Discount on bonds $(27)(30)$

Shareholders$$ Equity

Common stock $445415$

Paid$-$in capital$$excess of par $10590$

Preferred stock $800$

Retained earnings $245227$

Less: Treasury stock $(14)0$

$ $1,279$ $ $1,124$

ARDUOUS COMPANY

Income Statement

For Year Ended December $31,2024$

$($$ in millions$)$

Revenues and gain:

Sales revenue $ $460$

Investment revenue $16$

Gain on sale of Treasury bills $3$ $ $479$

Expenses and loss:

Cost of goods sold $185$

Salaries expense $78$

Depreciation expense $9$

Amortization expense $3$

Insurance expense $12$

Interest expense $33$

Loss on sale of equipment $28$

Income tax expense $41389$

Net income $ $90$

Additional information from the accounting records:

Investment revenue includes Arduous Company$$s $$12$ million share of the net income of Demur Company, an equity method investee.

Treasury bills were sold during $2024$ at a gain of $$3$ million. Arduous Company classifies its investments in Treasury bills as cash equivalents.

Equipment originally costing $$80$ million that was one$-$half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $$12$ million.

Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $$8$ million.

The preferred stock of Tory Corporation was purchased for $$30$ million as a long$-$term investment.

Land costing $$51$ million was acquired by issuing $$25$ million cash and a $10\%,$ four$-$year, $$26$ million note payable to the seller.

The right to use a building was acquired with a $15-$year lease agreement; present value of lease payments, $$87$ million. Annual lease payments of $$7$ million are paid at the beginning of each year starting January $1,2024.$

$$65$ million of bonds were retired at maturity.

In February, Arduous issued a stock dividend $(6\mathrm{.}0$ million shares$).$ The market price of the $$5$ par value common stock was $$7\mathrm{.}50$ per share at that time.

In April, $1$ million shares of common stock were repurchased as treasury stock at a cost of $$14\mathrm{.}00$ million.

Required:

Prepare the statement of cash flows of Arduous Company for the year ended December $31,2024.$ Present cash flows from operating activities by the direct method.

Note: Do not round your intermediate calculations. Enter your answers in millions $($i$.$e$.,10,0$