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 (s in millions) 2018 2017 Assets Cash Accounts receivable $174155 463 455 Less: Allowance for uncollectible (10) accounts Prepaid insurance Inventory Long-term investment Land Buildings and equipment 443 86 300 424 16 435 135 300 400 Less: Accumulated depreciation Trademark (166) (145) 36 40 $1,758 $1,783 Liabilities Accounts payable Salaries payable Deferred income tax liability Lease liability Bonds payable $ 55 78 20 345 25 109 185 (33) Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Preferred stock Retained earnings (40) 400 150 821 $1,758 $1,783 420 170 50 NATIONAL INTERCABLE COMPANY Income Statement For Year Ended December 31, 2018 (s in millions) Revenues Sales revenue Investment revenue Gain on sale of investments $ 650 18 $ 675 Expenses 290 82 45 Cost of goods sold Salaries expense Depreciation expense Trademark amortization expense Bad debt expense Insurance expense Bond interest expense 48 60 Loss on building fire Income before tax Income tax expense 67 603 72 58 $ 14 Net income Additional information from the accounting records: a. Investment revenue includes National Intercable Company's $9 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 $58 million, was sold for $65 million. c. Pretax accounting income exceeded taxable income causing the deferred income tax liability to increase by $5 million. d. A building that originally cost $96 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, $120 million. Annual lease payments of $11 million are paid at Jan. 1 of each year starting in 2018. f. $160 million of bonds were retired at maturity. g. $20 million par value of common stock was sold for $40 million, and $50 million of preferred stock was sold at par. h. Shareholders were paid cash dividends of $64 million. Required: 2. Prepare the statement of cash flows. Present cash flows from operating activities by the direct method. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10.). Amounts to be deducted should be indicated with a minus sign.) NATIONAL INTERCABLE COMPANY Statement of Cash Flows For year ended December 31, 2018 ($ in millions) Cash inflows: Cash outflows: 0 Noncash investing and financing activities: 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 (s in millions) 2018 2017 Assets Cash Accounts receivable $174155 463 455 Less: Allowance for uncollectible (10) accounts Prepaid insurance Inventory Long-term investment Land Buildings and equipment 443 86 300 424 16 435 135 300 400 Less: Accumulated depreciation Trademark (166) (145) 36 40 $1,758 $1,783 Liabilities Accounts payable Salaries payable Deferred income tax liability Lease liability Bonds payable $ 55 78 20 345 25 109 185 (33) Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Preferred stock Retained earnings (40) 400 150 821 $1,758 $1,783 420 170 50 NATIONAL INTERCABLE COMPANY Income Statement For Year Ended December 31, 2018 (s in millions) Revenues Sales revenue Investment revenue Gain on sale of investments $ 650 18 $ 675 Expenses 290 82 45 Cost of goods sold Salaries expense Depreciation expense Trademark amortization expense Bad debt expense Insurance expense Bond interest expense 48 60 Loss on building fire Income before tax Income tax expense 67 603 72 58 $ 14 Net income Additional information from the accounting records: a. Investment revenue includes National Intercable Company's $9 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 $58 million, was sold for $65 million. c. Pretax accounting income exceeded taxable income causing the deferred income tax liability to increase by $5 million. d. A building that originally cost $96 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, $120 million. Annual lease payments of $11 million are paid at Jan. 1 of each year starting in 2018. f. $160 million of bonds were retired at maturity. g. $20 million par value of common stock was sold for $40 million, and $50 million of preferred stock was sold at par. h. Shareholders were paid cash dividends of $64 million. Required: 2. Prepare the statement of cash flows. Present cash flows from operating activities by the direct method. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10.). Amounts to be deducted should be indicated with a minus sign.) NATIONAL INTERCABLE COMPANY Statement of Cash Flows For year ended December 31, 2018 ($ in millions) Cash inflows: Cash outflows: 0 Noncash investing and financing activities