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)20182017AssetsCash$130$110Accounts receivable329320Less: Allowance for uncollectible accounts(11)(9)Prepaid insurance410Inventory306300Long-term investment5990Land210210Buildings and equipment330310Less: Accumulated depreciation(110)(100)Trademark2830$1,275$1,271LiabilitiesAccounts payable$41$60Salaries payable58Deferred income tax liability2620Lease liability660Bonds payable140300Less: Discount on bonds(27)(31)Shareholders' EquityCommon stock330310Paid-in capitalexcess of par135105Preferred stock600Retained earnings499499$1,275$1,271

NATIONAL INTERCABLE COMPANY

Income Statement

For Year Ended December 31, 2018

($ in millions)RevenuesSales revenue$450Investment revenue16Gain on sale of investments7$473ExpensesCost of goods sold200Salaries expense66Depreciation expense25Trademark amortization expense2Bad debt expense7Insurance expense30Bond interest expense45Loss on building fire41416Income before tax57Income tax expense31Net income$26

Additional information from the accounting records:

1. Investment revenue includes National Intercable Company's $9 million share of the net income of Central Fiber Optics Corporation, an equity method investee.
2. A long-term investment in bonds, originally purchased for $40 million, was sold for $47 million.
3. Pretax accounting income exceeded taxable income causing the deferred income tax liability to increase by $6 million.
4. A building that originally cost $60 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged parts were sold for $4 million.
5. The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $80 million. Annual lease payments of $14 million are paid at Jan. 1 of each year starting in 2018.
6. $160 million of bonds were retired at maturity.
7. $20 million par value of common stock was sold for $50 million, and $60 million of preferred stock was sold at par.
8. Shareholders were paid cash dividends of $26 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.)