The comparative balance sheets for 2018 and 2017 and the income statement for 2018 are given below for Arduous Company. Additional information from Arduous's accounting records is provided also. ARDUOUS COMPANY Comparative Balance Sheets December 31, 2018 and 2017 (s in millions) 2018 2017 Assets Cash Accounts receivable Investment revenue receivable $ 118 $ 85 194 202 10 Inventory Prepaid inurance Long-term investment Land 204 14 129 154 204 416 (100) (128 37 Buildings and equipment Less: Accumulated depreciation Patent 408 39 1,268 1,115 Liabilities Accounts payable Salaries payable Bond interest payable Income tax payable Deferred income tax liability Notes payable Lease 1iability Bonds payable Lessi Discount on bonds $ 54 73 20 16 19 2 1 12 80 219 283 (34) (26) Shareholders' Equity Common stock 434 414 89 Paid-in capital-excess of par Preferred stock 79 Shareholders' Equity Common stock 434 414 89 Paid-in capital-excess of par Preferred stock 79 Retained earnings Less: Treasury stock 278 229 31 1,268 1,115 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2018 (s in millions) Revenues and gain Sales revenue 439 15 Investment revenue Gain on sale of treasury bills 2 $456 Expenses and loss: Cost of goods sold Salaries expense Depreciation expense Patent amortization expense 175 63 Insurance expense Bond interest expense Loss on machine damage Income tax expense 32 26 40 360 Net income $ 96 Additional information from the accounting records a. Investment revenue includes Arduo eauitv method investee us Company's $10 million share of the net income of Demur Company, an Check n Additional information from the accounting records: a. Investment revenue includes Arduous Company's $10 million share of the net income of Demur Company, arn equity method investee. b. Treasury bills were sold during 2018 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents. c. A machine originally costing $78 million that was one-half depreciated was rendered unusable by a flood. Most major components of the machine were unharmed and were sold for $13 million. d. Temporary differences between pretax accounting income and taxable income caused the deferred income tax liability to increase by $7 million. e. The preferred stock of Tory Corporation was purchased for $29 million as a long-term investment Land costing $50 million was acquired by issuing $25 million cash and a 10%, four-year, $25 million note payable to the seller. g. The right to use a building was acquired with a 15-year lease agreement: present value of lease payments, $86 million. Annual lease payments of $6 million are paid at the beginning of each year starting January 1, 2018. h. $64 million of bonds were retired at maturity. i. In February, Arduous issued a 4% stock dividend (4 million shares. The market price of the $5 par value common stock was $7.5 per share at that time. J. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $31 million. Prepare the statement of cash flows for Arduous Company. Use the T-account method to assist in your analysis. (Do not round mediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10.). Amounts to be deduct should be indicated with a minus sign.) ARDUOUS COMPANY Prepare the statement of cash flows for Arduous Company. Use the T-account method to assist in your analysis. (Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10.). Amounts to be deduct should be indicated with a minus sign.) ARDUOUS COMPANY Statement of Cash Flows For year ended December 31, 2018 ($ in millions) Cash inflows: Cash outfilows: Next> KPrev 3 of 3 Help Required information Prev 3 of 3 Neyt Required information
