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 $ 96 $ 75 Accounts receivable 222 215 Less: Allowance for uncollectible accounts (9 ) (7 ) Prepaid insurance 9 13 Inventory 204 195 Long-term investment 34 55 Land 190 190 Buildings and equipment 268 230 Less: Accumulated depreciation (82 ) (65 ) Trademark 34 35 $ 966 $ 936 Liabilities Accounts payable $ 34 $ 46 Salaries payable 5 7 Deferred income tax liability 16 13 Lease liability 57 0 Bonds payable 135 265 Less: Discount on bonds (20 ) (23 ) Shareholders' Equity Common stock 260 230 Paid-in capitalexcess of par 95 65 Preferred stock 50 0 Retained earnings 334 333 $ 966 $ 936 NATIONAL INTERCABLE COMPANY Income Statement For Year Ended December 31, 2018 ($ in millions) Revenues Sales revenue $ 310 Investment revenue 14 Gain on sale of investments 4 $ 328 Expenses Cost of goods sold 130 Salaries expense 55 Depreciation expense 25 Trademark amortization expense 1 Bad debt expense 6 Insurance expense 16 Bond interest expense 35 Loss on building fire 21 289 Income before tax 39 Income tax expense 23 Net income $ 16 Additional information from the accounting records: Investment revenue includes National Intercable Company's $5 million share of the net income of Central Fiber Optics Corporation, an equity method investee. A long-term investment in bonds, originally purchased for $26 million, was sold for $30 million. Pretax accounting income exceeded taxable income causing the deferred income tax liability to increase by $3 million. A building that originally cost $32 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged parts were sold for $3 million. The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $70 million. Annual lease payments of $13 million are paid at Jan. 1 of each year starting in 2018. $130 million of bonds were retired at maturity. $30 million par value of common stock was sold for $60 million, and $50 million of preferred stock was sold at par. Shareholders were paid cash dividends of $15 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.)