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.

Additional information from the accounting records:

Investment revenue includes National Intercable Company's $7 million share of the net income of Central Fiber Optics Corporation, an equity method investee.

A long-term investment in bonds, originally purchased for $56 million, was sold for $60 million.

Pretax accounting income exceeded taxable income causing the deferred income tax liability to increase by $6 million.

A building that originally cost $92 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged parts were sold for $5 million.

The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $110 million. Annual lease payments of $10 million are paid at Jan. 1 of each year starting in 2018.

$150 million of bonds were retired at maturity.

$10 million par value of common stock was sold for $30 million, and $40 million of preferred stock was sold at par.

Shareholders were paid cash dividends of $62 million.

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

NATIONAL INTERCABLE COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) 2018 2017 Assets Cash Accounts receivable $157$ 150 440 447 Less: Allowance for uncollectible accounts Prepaid insurance Inventory Long-term investment Land Buildings andequipment 429 81 290 408 15 420 130 290 390 (157)(140) Less: Accumulated depreciation Trademark 31 35 $1,686 $1,723 Liabilities Accounts payable Salaries payable Deferred income tax liability Lease liability Bonds payable $54$76 19 340 5 25 100 190 (33) Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Preferred stock Retained earnings (39) 400 165 40 740 390 145 785 $1,686 $1,723