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. 2017 NATIONAL INTERCABLE COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) 2018 Assets Cash $ 137 Accounts receivable 342 Less: Allowance for uncollectible (7) accounts Prepaid insurance Inventory 320 Long-term investment 60 Land 220 Buildings and equipment 346 Less: Accumulated depreciation (119) Trademark $ 115 335 (5) 11 315 95 220 320 (105) 35 $1,336 33 $1,338 $ 47 $ 62 9 12 Liabilities Accounts payable Salaries payable Deferred income tax liability Lease liability Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Preferred stock Retained earnings 17 75 125 (27) 305 (32) 320 110 350 140 70 536 $1,338 550 $1,336 $ 470 13 6 $ 489 210 NATIONAL INTERCABLE COMPANY Income Statement For Year Ended December 31, 2018 ($ in millions) Revenues Sales revenue Investment revenue Gain on sale of investments Expenses Cost of goods sold Salaries expense Depreciation expense Trademark amortization expense Bad debt expense Insurance expense Bond interest expense Loss on building fire Income before tax Income tax expense Net income 44 444 $ 14 Additional information from the accounting records. a. Investment revenue includes National Intercable Company's $7 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 $42 million, was sold for $48 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 $64 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged parts were sold for $4 million. e. The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $90 million. Annual lease payments of $15 million are paid at Jan. 1 of each year starting in 2018. f. $180 million of bonds were retired at maturity. g. $30 million par value of common stock was sold for $60 million, and $70 million of preferred stock was sold at par. h. Shareholders were paid cash dividends of $28 million. NATIONAL INTERCABLE COMPANY Statement of Cash Flows For year ended December 31, 2018 ($ in millions) Cash inflows: Cash outflows: Noncash investing and financing activities: Acquired equipment