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 Assets Cash $ 159 $ 85 Accounts receivable 194 198 Investment revenue receivable 10 8 Inventory 209 204 Prepaid insurance 8 12 Long-term investment 156 125 Land 200 154 Buildings and equipment 434 404 Less: Accumulated depreciation (101 ) (124 ) Patent 37 39 $ 1,306 $ 1,105 Liabilities Accounts payable $ 54 $ 73 Salaries payable 10 15 Interest payable (bonds) 12 8 Income tax payable 16 18 Deferred tax liability 15 12 Notes payable 23 0 Lease liability 93 0 Bonds payable 219 279 Less: Discount on bonds (23 ) (26 ) Shareholders' Equity Common stock 430 410 Paid-in capitalexcess of par 109 97 Preferred stock 79 0 Retained earnings 278 219 Less: Treasury stock (9 ) 0 $ 1,306 $ 1,105 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 ($ in millions) Revenues and gain: Sales revenue $ 500 Investment revenue 23 Gain on sale of treasury bills 2 $ 525 Expenses and loss: Cost of goods sold 184 Salaries expense 77 Depreciation expense 12 Amortization expense 2 Insurance expense 11 Interest expense 32 Loss on sale of equipment 18 Income tax expense 40 376 Net income $ 149 Additional information from the accounting records: Investment revenue includes Arduous Company's $6 million share of the net income of Demur Company, an equity method investee. Treasury bills were sold during 2021 at a gain of $2 million.

Arduous Company classifies its investments in Treasury bills as cash equivalents. Equipment originally costing $70 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $17 million. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $3 million. The preferred stock of Tory Corporation was purchased for $25 million as a long-term investment. Land costing $46 million was acquired by issuing $23 million cash and a 15%, four-year, $23 million note payable to the seller. The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $100 million. Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2021. $60 million of bonds were retired at maturity. In February, Arduous issued a stock dividend (4 million shares). The market price of the $5 par value common stock was $8 per share at that time. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million.

Required:

1). Prepare the T-accounts for Arduous Company. (Enter your answers in thousands. (i.e., 10,000 should be entered as 10).)

2). Prepare the statement of cash flows for Arduous Company. Use the T-account method to assist in your analysis. (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