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. NATIONAL INTERCABLE COMPANY Comparative Balance Sheets December 31, 2018 and 2017 (5 in millions) 2018 2017 $ $ 145 174 434 (8) 425 (6) 15 Assets Cash Accounts receivable Less: Allowance for uncollectible accounts Prepaid insurance Inventory Long-term investment Land Buildings and equipment Less: Accumulated depreciation Trademark 412 125 280 280 392 (148) 380 Yences 30 $1,647 $1,664 $ 53 $ 74 23 18 85 155 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 335 (38) (32) 430 150 380 140 698 $1,647 746 $1,664 $ 610 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 62578 Additional information from the accounting records: a. Investment revenue includes National Intercable Company's $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 $54 million, was sold for $58 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 $88 million, and which was one fourth depreciated. was destroyed by fire. Some undamaged parts were sold for $6 million e. The right to use a building was acquired with a seven year lease agreement present Value of lease payments. $100 million. Annual lease payments of S15 million are paid at Jan, 1 of each year starting in 2018 S180 million of bonds were retired at maturity G. 550 million par value of common stock was sold for $60 million and S80 milion of preferred stock was sold at par h Shareholders were paid cash dividends of $60 million Required: 2. Prepare the statement of cash flows. Present cash flows from operating activities by the direct method. (Enter millions de 10.000.000 should be entered as 10.). Amounts to be deducted should be indicated with a minus NATIONAL INTERCAL For year ended Dece Slin millions) Cash outflows nment to Noncash investing and financing activities