The comparative balance sheets for 2021 and 2020 and the income statement for 2021 are given below for Arduous Company Additional information from Arduous's accounting records is provided also. ARDUOUS COMPANY Comparative Balance Sheets December 31, 2021 and 2020 (in millions) 2021 2020 Assots Cash Accounts receivable $ 130 $ 200 91 214 Investment revenue receivable Inventory Prepaid insurance Long-term investeent Land Buildings and equipment 15 14 216 210 13 22 185 135 216 160 422 420 Less Accumulated depreciation Patent (109) (140) 44 45 $1,332 $1,171 Liabilities Accounts payable Salaries payable $ 60 $ 45 15 30 Interest payable (bonds) Income tax payable 17 14 22 20 Deferred tax liability 31 W Notes payable 28 Lease liability. 86 Bonds payable 225 255 Less: Discount on bonds (32) (39) Shareholders' Equity Common stock 460 420 Paid-in capital-excess of par 115 95 Preferred stock 85 O Retained earnings 239 225 Leses Treasury stock, (19) O $1,332 $1,171 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 ($ in millions) Revenues and gain Sales revenue Investment revenue $494 20 Expenses and loss Gain on sale of Treasury bills Cost of goods sold Salaries expense 1 $515 190 83 Depreciation expense 14 Amortization expense 1 Insurance expense 17 Interest expense 38 Loss on sale of equipment 25 Income tax expense 46 414 Net income $101 Additional information from the accounting records: a. Investment revenue includes Arduous Company's $15 million share of the net income of Demur Company, ak equity method investee. b. Treasury bills were sold during 2021 at a gain of $1 million. Arduous Company classifies its investments in Treasury bills as cash equivalents. c. Equipment originally costing $90 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $20 million. d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $13 million. e. The preferred stock of Tory Corporation was purchased for $35 million as a long-term investment f. Land costing $56 million was acquired by issuing $28 million cash and a 10%, four-year, $28 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, $92 million. Annual lease payments of $6 million are paid at the beginning of each year starting January 1, 2021. h. $70 million of bonds were retired at maturity. 1. In February, Arduous issued dividend (8.0 million shares). The market price of the $5 par value common stock was $7.50 per share at that time. Prepare the statement of cash flows of Arduous Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in millions (ie., 10,000,000 should be entered as 10.). Amounts to be deducted should be indicated with a minus sign.) ARDUOUS COMPANY Statement of Cash Flows For year ended December 31, 2021 (5 in millions) Cash flows from operating activities: Cash inflows: From customers From investment revenue From sale of cash equivalents Cash outflows: To suppliers of goods To employees For insurance For interest For income tax Net cash flows from operating activities Cash flows from investing activities $ 508 4 1 (221) (95) (8) (28) (65) $ 96 Net cash flows from operating activities Cash flows from investing activities: $ 96 90 Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase (decrease) in cash 96 Cash balance, January 1 Cash balance, December 31 $ 96 Noncash investing and financing activities