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.

NATIONAL INTERCABLE COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions)
	2018				2017
Assets
Cash	$	145			$	120
Accounts receivable		358				350
Less: Allowance for uncollectible accounts		(8	)			(6	)
Prepaid insurance		7				12
Inventory		338				330
Long-term investment		61				100
Land		230				230
Buildings and equipment		352				330
Less: Accumulated depreciation		(128	)			(110	)
Trademark		19				20
	$	1,374			$	1,376
Liabilities
Accounts payable	$	48			$	64
Salaries payable		2				4
Deferred income tax liability		17				13
Lease liability		80				0
Bonds payable		110				310
Less: Discount on bonds		(28	)			(33	)
Shareholders' Equity
Common stock		370				330
Paid-in capitalexcess of par		145				115
Preferred stock		80				0
Retained earnings		550				573
	$	1,374			$	1,376

NATIONAL INTERCABLE COMPANY Income Statement For Year Ended December 31, 2018 ($ in millions)
Revenues
Sales revenue	$	490
Investment revenue		10
Gain on sale of investments		6		$	506
Expenses
Cost of goods sold		220
Salaries expense		70
Depreciation expense		35
Trademark amortization expense		1
Bad debt expense		6
Insurance expense		34
Bond interest expense		55
Loss on building fire		46			467
Income before tax					39
Income tax expense					32
Net income				$	7

Additional information from the accounting records:

1. Investment revenue includes National Intercable Company's $5 million share of the net income of Central Fiber Optics Corporation, an equity method investee.
2. A long-term investment in bonds, originally purchased for $44 million, was sold for $50 million.
3. Pretax accounting income exceeded taxable income causing the deferred income tax liability to increase by $4 million.
4. A building that originally cost $68 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged parts were sold for $5 million.
5. 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 $10 million are paid at Jan. 1 of each year starting in 2018.
6. $200 million of bonds were retired at maturity.
7. $40 million par value of common stock was sold for $70 million, and $80 million of preferred stock was sold at par.
8. Shareholders were paid cash dividends of $30 million.

Required: 2. Prepare the statement of cash flows. Present cash flows from operating activities by the direct method. (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.)

6 Saved Help Save & Exit Submit Check my work NATIONAL INTERCABLE COMPAN Statement of Cash Flows For year ended December 31, 2018 (S in millions) Cash inflows Cash outfiows Saved Help Save & Exit Submit Check my work Noncash investing and financing activities