The comparative balance sheets for 2018 and 2017 and the income statement for 2018 are given below for Arduous Company. Additional information from Arduouss accounting records is provided also. ARDUOUS COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) 2018 2017 Assets Cash $ 126 $ 90 Accounts receivable 199 212 Investment revenue receivable 16 13 Inventory 214 209 Prepaid insurance 14 21 Long-term investment 184 134 Land 214 159 Buildings and equipment 421 418 Less: Accumulated depreciation (107 ) (138 ) Patent 41 44 $ 1,322 $ 1,162 Liabilities Accounts payable $ 59 $ 83 Salaries payable 16 21 Bond interest payable 18 13 Income tax payable 21 23 Deferred income tax liability 29 17 Notes payable 28 0 Lease liability 83 0 Bonds payable 224 293 Less: Discount on bonds (31 ) (34 ) Shareholders Equity Common stock 457 419 Paid-in capitalexcess of par 113 94 Preferred stock 84 0 Retained earnings 239 233 Less: Treasury stock (18 ) 0 $ 1,322 $ 1,162 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2018 ($ in millions) Revenues and gain: Sales revenue $ 487 Investment revenue 21 Gain on sale of treasury bills 3 $ 511 Expenses and loss: Cost of goods sold 189 Salaries expense 82 Depreciation expense 13 Patent amortization expense 3 Insurance expense 16 Bond interest expense 37 Loss on machine damage 26 Income tax expense 45 411 Net income $ 100 Additional information from the accounting records: Investment revenue includes Arduous Companys $16 million share of the net income of Demur Company, an equity method investee. Treasury bills were sold during 2018 at a gain of $3 million. Arduous Company classifies its investments in Treasury bills as cash equivalents. A machine originally costing $88 million that was one-half depreciated was rendered unusable by a flood. Most major components of the machine were unharmed and were sold for $18 million. Temporary differences between pretax accounting income and taxable income caused the deferred income tax liability to increase by $12 million. The preferred stock of Tory Corporation was purchased for $34 million as a long-term investment. Land costing $55 million was acquired by issuing $27 million cash and a 12%, four-year, $28 million note payable to the seller. The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $91 million. Annual lease payments of $8 million are paid at the beginning of each year starting January 1, 2018. $69 million of bonds were retired at maturity. In February, Arduous issued a stock dividend (7.6 million shares). The market price of the $5 par value common stock was $7.50 per share at that time. Also the company paid a cash dividend. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $18.00 million. Required: Prepare the statement of cash flows of Arduous Company for the year ended December 31, 2018. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. 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.)