Required: 1. Prepare the T-accounts for Arduous Company. Note: 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.) [The following information applies to the questions displayed below.] 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. \begin{tabular}{lrr} Notes payable & 23 & 0 \\ Lease liability & 97 & 0 \\ Bonds payable & 220 & 280 \\ Less: Discount on bonds & (23) & (26) \\ Shareholders' Equity & & \\ Common stock & 430 & 410 \\ Paid-in capital-excess of par & 112 & 100 \\ Preferred stock & 80 & 0 \\ Retained earnings & 286 & 217 \\ Less: Treasury stock & (9) & 0 \\ & $1,328$1,113 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|l|} \hline Beginning Balance & Beginning Balance \\ \hline & Beginning Balance & \\ \hline \end{tabular} 2. Prepare the statement of cash flows for Arduous Company. Use the T-account method to assist in your analysis. Note: 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. Additional information from the accounting records: a. Investment revenue includes Arduous Company's $6 million share of the net income of Demur Company, an equity method investee. b. Treasury bills were sold during 2024 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents. c. Equipment originally costing $70 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $16 million. d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $3 million. e. The preferred stock of Tory Corporation was purchased for $25 million as a long-term investment. f. Land costing $46 million was acquired by issuing $23 million cash and a 15%, four-year, $23 million note payable to the seller. g. The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $104 million. Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2024. h. $60 million of bonds were retired at maturity. i. In February, Arduous issued a stock dividend (4 million shares). The market price of the $5 par value common stock was $8 per share at that time. J. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million. \begin{tabular}{|c|c|} \hline Net C & 4 \\ \hline Cash flows from investing activities: & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline Net cash flows from investing activities & 0 \\ \hline Cash flows from financing activities: & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline Net cash flows from financing activities & 0 \\ \hline Net increase in cash & \\ \hline Cash balance, January 1 & \\ \hline Cash balance, December 31 & $0 \\ \hline Noncash investing and financing activities: & \\ \hline & \\ \hline & \\ \hline & \\ \hline \end{tabular} Required: 1. Prepare the T-accounts for Arduous Company. Note: 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.) [The following information applies to the questions displayed below.] 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. \begin{tabular}{lrr} Notes payable & 23 & 0 \\ Lease liability & 97 & 0 \\ Bonds payable & 220 & 280 \\ Less: Discount on bonds & (23) & (26) \\ Shareholders' Equity & & \\ Common stock & 430 & 410 \\ Paid-in capital-excess of par & 112 & 100 \\ Preferred stock & 80 & 0 \\ Retained earnings & 286 & 217 \\ Less: Treasury stock & (9) & 0 \\ & $1,328$1,113 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|l|} \hline Beginning Balance & Beginning Balance \\ \hline & Beginning Balance & \\ \hline \end{tabular} 2. Prepare the statement of cash flows for Arduous Company. Use the T-account method to assist in your analysis. Note: 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. Additional information from the accounting records: a. Investment revenue includes Arduous Company's $6 million share of the net income of Demur Company, an equity method investee. b. Treasury bills were sold during 2024 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents. c. Equipment originally costing $70 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $16 million. d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $3 million. e. The preferred stock of Tory Corporation was purchased for $25 million as a long-term investment. f. Land costing $46 million was acquired by issuing $23 million cash and a 15%, four-year, $23 million note payable to the seller. g. The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $104 million. Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2024. h. $60 million of bonds were retired at maturity. i. In February, Arduous issued a stock dividend (4 million shares). The market price of the $5 par value common stock was $8 per share at that time. J. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million. \begin{tabular}{|c|c|} \hline Net C & 4 \\ \hline Cash flows from investing activities: & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline Net cash flows from investing activities & 0 \\ \hline Cash flows from financing activities: & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline Net cash flows from financing activities & 0 \\ \hline Net increase in cash & \\ \hline Cash balance, January 1 & \\ \hline Cash balance, December 31 & $0 \\ \hline Noncash investing and financing activities: & \\ \hline & \\ \hline & \\ \hline & \\ \hline \end{tabular}