The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for National Intercable Company. Additional information from NICs accounting records is provided also.
Help Save & Exit Submit Check my work The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 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, 2018 and 2017 $ in millions) 2018 8 2017 Assets Cash Accounts receivable 145 120 350 358 Less: Allowance for uncollectible accounts Prepaid insurance Inventory Long-term investment Land Buildings and equipment 5 338 230 (128) (110) 330 1e0 230 330 Less: Accumulated depreciation Trademark $1,374 $1,376 Liabilities Accounts payable Salaries payable Deferred income tax liability Lease liability Bonds payable $ 48 $ 64 118 (28) 310 (33) Less: Discount on bonds Shareholders' Equity Common stock 370 145 330 115 Paid-in capital-excess of par Preferred stock Retained earnings 558573 $1,374 $1,376 Income statement For Year Ended December 31, 2018 (s in millions) Revenues Sales revenue Investment revenue Gain on sale of investments $506 Expenses Cost of goods sold 220 Saved Help Save & Exit Submit my work Income Statement For Year Ended December 31, 2018 (s in millions) Revenues Sales revenue Investment revenue Gain on sale of investments $ 490 10 $586 Expenses Cost of goods sold Salaries expense Depreciation expense Trademark amortization expense Bad debt expense Insurance expense Bond interest expense 220 7e 35 34 Loss on building fire Income before tax Income tax expense 46 467 39 32 Net income Additional information from the accounting records a. Investment revenue includes National Intercable Company's $5 million share of the net income of Central Fiber Optics Corporation, an equity method investee b. A long-term investment in bonds, originally purchased for $44 million, was sold for $50 million. C. Pretax accounting income exceeded taxable income causing the deferred income tax liability to increase by $4 million. d. A building that originally cost $68 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged parts were sold for $5 million. e. The right to use a building was acquired with a seven-year lease agreement present value of lease payments, $90 million. Annual lease payments of $10 million are paid at Jan. 1 of each year starting in 2018. f. $200 million of bonds were retired at maturity g. $40 million par value of common stock was sold for $70 million, and $80 million of preferred stock was sold at par h. Shareholders were paid cash dividends of S30 million. Required: 2. Prepare the statement of cash flows. Present cash flows from operating activities by the direct method. (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.) 0 Saved Help Save & Exit Submit Check my work NATIONAL INTERCABLE COMPANY Statement of Cash Flows For year ended December 31, 2018 (S in millions) Cash inflows Cash outfiows Saved Help Save & Exit Submit Check my work Noncash investing and financing activities
