The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for NATIONAL INTERCABLE COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) 2018 2017 $ 127 253 (11) $ 85 245 (9) 15 Assets Cash Accounts receivable Less: Allowance for uncollectible accounts Prepaid insurance Inventory Long-term investment Land Buildings and equipment Less: Accumulated depreciation Trademark 234 225 160 300 (100) 250 (75) 22 25 $1,036 $ 986 $ $ 50 9 15 Liabilities Accounts payable Salaries payable Deferred income tax liability Lease liability Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital excess of par Preferred stock Retained earnings 36 6 18 75 125 (24) 275 280 105 70 345 $1,036 250 75 0 338 $ 986 $380 12 4 $ 396 NATIONAL INTERCABLE COMPANY Income Statement For Year Ended December 31, 2018 (s in millions) Revenues Sales revenue Investment revenue Gain on sale of investments Expenses Cost of goods sold Salaries expense Depreciation expense Trademark amortization expense Bad debt expense Insurance expense Bond interest expense Loss on building fire Income before tax. Income tax expense Net income 346 25 $ 25 Additional information from the accounting records: a Investment cente includes National Intereable Company's $7 million share of the net income of Central Fiber O MacBook Pro 000 F3 DESIGN Trademark amortization expense Bad debt expense Insurance axpense Bond interest expense Loss on building fire Income before tax Income tax expense Net Income N88. 346 Additional information from the accounting records: a. Investment revenue includes National Intercable Company's $7 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 $30 million, was sold for $34 million c. Pretax accounting income exceeded taxable income causing the deferred income tax liability to increase by $3 million d. A building that originally cost $40 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged parts were sold for $3 million. e. The right to use a building was acquired with a seven-year lease agreement present value of lease payments, 590 million Annual lease payments of $15 million are paid at Jan. 1 of each year starting in 2018 f. $ 150 million of bonds were retired at maturity. 9. $30 million par value of common stock was sold for $60 million, and $70 million of preferred stock was sold at par. h. Shareholders were paid cash dividends of $18 million Required: 2. Prepare the statement of cash flows. Present cash flows from operating activities by the direct method. (Enter your answers in millions (... 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 year ended December 31, 2018 (5 in millions) Cashindows Cash outflows: MacBook Pro