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.

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Item10

Item 10 2.5 points Item Skipped

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	$	138	$	92
Accounts receivable		201		216
Investment revenue receivable		17		15
Inventory		219		211
Prepaid insurance		15		23
Long-term investment		189		136
Land		218		161
Buildings and equipment		423		422
Less: Accumulated depreciation		(107)		(142)
Patent		42		45
	$	1,355	$	1,179
Liabilities
Accounts payable	$	61	$	87
Salaries payable		17		31
Bond interest payable		19		15
Income tax payable		23		30
Deferred income tax liability		33		19
Notes payable		28		0
Lease liability		93		0
Bonds payable		226		297
Less: Discount on bonds		(33)		(38)
Shareholders Equity
Common stock		453		421
Paid-in capitalexcess of par		106		96
Preferred stock		86		0
Retained earnings		263		221
Less: Treasury stock		(20)		0
	$	1,355	$	1,179

ARDUOUS COMPANY Income Statement

ARDUOUS COMPANY Income Statement For Year Ended December 31, 2016 ($ in millions)
Revenues and gain:
Sales revenue	$	520
Investment revenue		21
Gain on sale of treasury bills		2		$	543
Expenses and loss:
Cost of goods sold		191
Salaries expense		84
Depreciation expense		11
Patent amortization expense		2
Insurance expense		18
Bond interest expense		39
Loss on machine damage		24
Income tax expense		47			416
Net income				$	127

Additional information from the accounting records:
a.	Investment revenue includes Arduous Companys $17 million share of the net income of Demur Company, an equity method investee.
b.	Treasury bills were sold during 2016 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents.
c.	A machine originally costing $92 million that was one-half depreciated was rendered unusable by a flood. Most major components of the machine were unharmed and were sold for $22 million.
d.	Temporary differences between pretax accounting income and taxable income caused the deferred income tax liability to increase by $14 million.
e.	The preferred stock of Tory Corporation was purchased for $36 million as a long-term investment.
f.	Land costing $57 million was acquired by issuing $29 million cash and a 14%, four-year, $28 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, $93 million.
h.	$71 million of bonds were retired at maturity.
i.	In February, Arduous issued a 4% stock dividend (4 million shares). The market price of the $8 par value common stock was $10.50 per share at that time.
j.	In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $20 million.

Required:

Prepare the statement of cash flows for Arduous Company using the indirect method.