The comparative balance sheets for 2016 and 2015 and the income statement for 2016 are given below for Arduous Company. Additional information from Arduouss accounting records is provided also.

ARDUOUS COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in millions)
	2016		2015
Assets
Cash	$	136	$	91
Accounts receivable		200		214
Investment revenue receivable		15		14
Inventory		216		210
Prepaid insurance		13		22
Long-term investment		185		135
Land		226		160
Buildings and equipment		422		420
Less: Accumulated depreciation		(109)		(140)
Patent		44		45
	$	1,348	$	1,171
Liabilities
Accounts payable	$	60	$	85
Salaries payable		15		30
Bond interest payable		17		14
Income tax payable		22		28
Deferred income tax liability		31		18
Notes payable		33		0
Lease liability		92		0
Bonds payable		225		295
Less: Discount on bonds		(32)		(39)
Shareholders Equity
Common stock		450		420
Paid-in capitalexcess of par		110		95
Preferred stock		85		0
Retained earnings		259		225
Less: Treasury stock		(19)		0
	$	1,348	$	1,171

ARDUOUS COMPANY Income Statement For Year Ended December 31, 2016 ($ in millions)
Revenues
Sales revenue			$	494
Investment revenue				20
Gain on sale of treasury bills				1	$	515
Expenses and loss:
Cost of goods sold				190
Salaries expense				83
Depreciation expense				14
Patent amortization expense				1
Insurance expense				17
Bond interest expense				38
Loss on machine damage				25
Income tax expense				46		414
Net income					$	101

Additional information from the accounting records:
a.	Investment revenue includes Arduous Companys $15 million share of the net income of Demur Company, an equity method investee.
b.	Treasury bills were sold during 2016 at a gain of $1 million. Arduous Company classifies its investments in Treasury bills as cash equivalents.
c.	A machine originally costing $90 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 $13 million.
e.	The preferred stock of Tory Corporation was purchased for $35 million as a long-term investment.
f.	Land costing $66 million was acquired by issuing $33 million cash and a 10%, four-year, $33 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, $92 million.
h.	$70 million of bonds were retired at maturity.
i.	In February, Arduous issued a stock dividend (6 million shares). The market price of the $5 par value common stock was $7.50 per share at that time. Also the company paid a cash dividend.
j.	In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $19.00 million.

Required:

Prepare the statement of cash flows of Arduous Company for the year ended December 31, 2016. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. 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.)

ARDUOUS COMPANY Statement of Cash Flows For year ended December 31, 2016 (S in millions) Adjustments for noncash Changes in operating assets and liabilities