Problem 21-18 Statement of cash flows; indirect method (L021-4, 21-8] The comparative balance sheets for 2018 and 2017 and the income statement for 2018 are given below for Arduous Company Additional information from Arduous's accounting records is provided also. 2017 $ 100 232 23 219 32 144 169 (158) 56 $1,255 ARDUOUS COMPANY Comparative Balance Sheets December 31, 2018 and 2017 (5 in millions) 2018 Assets Cash 154 Accounts receivable 209 Investment revenue receivable 25 Inventory 226 Prepaid insurance 23 Long-term investment 213 Land 234 Buildings and equipment 437 Less Accumulated depreciation (117) Patent 53 $1,457 Liabilities Accounts payable 69 Salaries payable Bond interest payable Income tax payable Deferred income tax liability Notes payable Lease liability Bonds payable Less: Discount on bonds (41) Shareholders' Equity Common stock 487 Paid-in capital-excess of par 133 Preferred stock 97 Retained earnings Less: Treasury stock (28) $1,457 $ 103 23 31 27 32 101 234 313 (46) 429 104 241 227 $1,255 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2018 ($ in millions) Revenues and gain! ARDUOUS COMPANY Income Statement For Year Ended December 31, 2018 ($ in millions) Revenues and gain: Sales revenue $ 589 Investment revenue 30 Gain on sale of treasury bills 2 $ 621 Expenses and loss: Cost of goods sold 199 Salaries expense 92 Depreciation expense Patent amortization expense Insurance expense Bond interest expense Loss on machine damage Income tax expense 468 Net income $ 153 47 Net income $ 153 Additional information from the accounting records: a. Investment revenue includes Arduous Company's $25 million share of the net income of Demur Company, an equity method investee. b. Treasury bills were sold during 2018 at again of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents. c. A machine originally costing $108 million that was one-half depreciated was rendered unusable by a flood. Most major components of the machine were unharmed and were sold for $20 million. d. Temporary differences between pretax accounting income and taxable income caused the deferred income tax liability to increase by $22 million e. The preferred stock of Tory Corporation was purchased for $44 million as a long-term investment. f. Land costing $65 million was acquired by Issuing $33 million cash and a 10%, four-year, $32 million note payable to the seller. Q. The right to use a building was acquired with a 15-year lease agreement present value of lease payments, 5101 million Annual lease payments of $6 million are paid at the beginning of each year starting January 1, 2018 h. $79 million of bonds were retired at maturity. I in February, Arduous issued a stock dividend (11.6 million shares). The market price of the $5 par value common stock was $7.50 per share at that time. J. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $28 million Required: Prepare the statement of cash flows for Arduous Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Do not round your intermediate calculations. Enter your answers in millions (le, 10,000,000 should be entered as 10.).) ARDUOUS COMPANY Statement of Cash Flows For year ended December 31, 2018 (5 in millions) Adjustments for noncash effects