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: a. Investment revenue includes National Intercable Companys $6 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 $30 million, was sold for $35 million. c. Pretax accounting income exceeded taxable income, causing the deferred income tax liability to increase by $3 million.

d. 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. e. 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. f. $130 million of bonds were retired at maturity. g. $20 million par value of common stock was sold for $30 million, and $50 million of preferred stock was sold at par. h. Shareholders were paid cash dividends of $30 million. Required: 1. Prepare a spreadsheet for preparation of the statement of cash flows (direct method) of National Intercable Company for the year ended December 31, 2018.

2017 $ 55 170 (6) 12 170 165 NATIONAL INTERCABLE COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) 2018 Assets Cash $ 57 Accounts receivable 181 Less: Allowance for uncollectible accounts (8) Prepaid insurance 7 Inventory Long-term investment 66 Land 150 Buildings and equipment 290 Less: Accumulated depreciation (85) Trademark 24 $852 Liabilities Accounts payable $ 30 Salaries payable 3 Deferred income tax liability 18 Lease liability 68 Bonds payable Less: Discount on bonds (22) Shareholders' Equity Common stock 310 Paid-in capital-excess of par 95 Preferred stock 50 Retained earnings 155 $852 90 150 270 (75) 25 $856 $ 45 8 15 0 145 275 (25) 290 85 0 163 $856 $340 NATIONAL INTERCABLE COMPANY Income Statement For Year Ended December 31, 2018 ($ in millions) Revenues Sales revenue $320 Investment revenue 15 Gain on sale of investments 5 Expenses Cost of goods sold 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 Income before tax Income tax expense Net income 125 298 42 20 $ 22