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

NATIONAL INTERCABLE COMPANY

Comparative Balance Sheets

December $31,2024$ and $2023$

$($$ in millions$)$

$20242023$

Assets

Cash $ $254$ $ $69$

Accounts receivable $209184$

Less: Allowance for uncollectible accounts $(8)(6)$

Prepaid insurance $2126$

Inventory $198179$

Long$-$term investment $80104$

Land $164164$

Right$-$of$-$use asset$$building $700$

Equipment $224340$

Less: Accumulated depreciation $(99)(89)$

Trademark $3839$

$ $1,151$ $ $1,010$

Liabilities

Accounts payable $ $44$ $ $73$

Salaries payable $1722$

Accrued interest payable $40$

Deferred tax liability $3229$

Lease liability $680$

Bonds payable $159303$

Less: Discount on bonds $(36)(39)$

Shareholders' Equity

Common stock $328308$

Paid$-$in capital$$excess of par $10999$

Preferred stock $640$

Retained earnings $362215$

$ $1,151$ $ $1,010$

NATIONAL INTERCABLE COMPANY

Income Statement

For Year Ended December $31,2024$

$($$ in millions$)$

Revenues

Sales revenue $ $614$

Investment revenue $29$

Gain on sale of investments $6$ $ $649$

Expenses

Cost of goods sold $139$

Salaries expense $69$

Depreciation expense $39$

Amortization expense$-$trademark $1$

Amortization expense$-$ROU asset $10$

Bad debt expense $21$

Insurance expense $27$

Accrued interest expense$-$lease $18$

Interest expense $44$

Loss on sale of building $84452$

Income before tax $197$

Income tax expense $20$

Net income $ $177$

Additional information from the accounting records:

Investment revenue includes National Intercable Company's $$6$ million share of the net income of Central Fiber Optics Corporation, an equity method investee.

A long$-$term investment in bonds, originally purchased for $$30$ million, was sold for $$36$ million.

Pretax accounting income exceeded taxable income, causing the deferred income tax liability to increase by $$3$ million.

Equipment that originally cost $$116$ million, and which was one$-$fourth depreciated, was destroyed by fire. Some undamaged sections were sold for $$3$ million.

The right to use a building was acquired on January $1,2024,$ with an eight$-$year finance agreement; present value of lease payments, $$80$ million. Annual lease payments of $$12$ million are paid on Jan. $1$ of each year starting in $2024.$

$$144$ million of bonds were retired at maturity.

$$20$ million par value of common stock was sold for $$30$ million, and $$64$ million of preferred stock was sold at par.

Shareholders were paid cash dividends of $$30$ million.

Required:

$2.$ Prepare the statement of cash flows. Present cash flows from operating activities by the direct method.

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.NATIONAL INTERCABLE COMPANY

Statement of Cash Flows

For the year ended December $31,2024$

$($ $ in millions$)$