The comparative balance sheets for 2018 and 2017 are given below for Surmise Company. Net income for 2018 was $52 million.

SURMISE COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions)
	2018				2017
Assets
Cash	$	67			$	72
Accounts receivable		75				78
Less: Allowance for uncollectible accounts		(8	)			(3	)
Prepaid expenses		3				2
Inventory		158				150
Long-term investment		45				20
Land		70				70
Buildings and equipment		288				200
Less: Accumulated depreciation		(94	)			(80	)
Patent		10				12
	$	614			$	521
Liabilities
Accounts payable	$	4			$	13
Accrued liabilities		1				5
Notes payable		20				0
Lease liability		80				0
Bonds payable		50				90
Shareholders Equity
Common stock		55				50
Paid-in capitalexcess of par		247				205
Retained earnings		157				158
	$	614			$	521

Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2018. Use the indirect method to present cash flows from operating activities because you do not have sufficient information to use the direct method. You will need to make reasonable assumptions concerning the reasons for changes in some account balances. A spreadsheet or T-account analysis will be helpful. (Hint: The right to use a building was acquired with a seven-year lease agreement. Annual lease payments of $8 million are paid at January 1 of each year starting in 2018.)