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.

NATIONAL INTERCABLE COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions)
	2018				2017
Assets
Cash	$	57			$	55
Accounts receivable		181				170
Less: Allowance for uncollectible accounts		(8	)			(6	)
Prepaid insurance		7				12
Inventory		170				165
Long-term investment		66				90
Land		150				150
Buildings and equipment		290				270
Less: Accumulated depreciation		(85	)			(75	)
Trademark		24				25
	$	852				856
Liabilities
Accounts payable	$	30			$	45
Salaries payable		3				8
Deferred income tax liability		18				15
Lease liability		68				0
Bonds payable		145				275
Less: Discount on bonds		(22	)			(25	)
Shareholders Equity
Common stock		310				290
Paid-in capitalexcess of par		95				85
Preferred stock		50				0
Retained earnings		155				163
	$	852			$	856

NATIONAL INTERCABLE COMPANY Income Statement For Year Ended December 31, 2018 ($ in millions)
Revenues
Sales revenue	$	320
Investment revenue		15
Gain on sale of investments		5		$	340
Expenses
Cost of goods sold		125
Salaries expense		55
Depreciation expense		25
Trademark amortization expense		1
Bad debt expense		7
Insurance expense		13
Bond interest expense		30
Loss on building fire		42			298
Income before tax					42
Income tax expense					20
Net income				$	22

Additional information from the accounting records:

1. Investment revenue includes National Intercable Company's $6 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 $30 million, was sold for $35 million.
3. Pretax accounting income exceeded taxable income, causing the deferred income tax liability to increase by $3 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 $3 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 $12 million are paid at Jan. 1 of each year starting in 2018.
6. $130 million of bonds were retired at maturity.
7. $20 million par value of common stock was sold for $30 million, and $50 million of preferred stock was sold at par.
8. Shareholders were paid cash dividends of $30 million.

Required: 1. Prepare the statement of cash flows. Present cash flows from operating activities by the direct method.