The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for National Intercable Company. Additional information from NICs accounting records is provided also.

NATIONAL INTERCABLE COMPANY

Comparative Balance Sheets

December 31, 2021 and 2020

($ in millions)

2021 2020

Assets

Cash. $60 23

Accounts receivable. 39 54

Less: Allowance for uncollectible accounts (5) (4)

dividends receivable 6 5

Inventory 55 50

Long-term investment 19 16

Land 75 55

Buildings and equipment 266 280

Less: Accumulated depreciation (62). (80)

$ 453 $ 399

Liabilities

Accounts payable. $31 $33

Salaries payable. 1 6

interest payable. 8 5

income tax payable 7 8

notes payable 20 0

bonds payable. 110 85

Less: Discount on bonds (3) (4)

Shareholders' Equity

Common stock 210 200

Paid-in capitalexcess of par 24 20

Retained earnings. 52 46

less:treasury stock (7) 0

$453 $399

NATIONAL INTERCABLE COMPANY

Income Statement

For Year Ended December 31, 2021

($ in millions)

Revenues

Sales revenue$230

dividends revenue 6 $236

Expenses

Cost of goods sold 135

Salaries expense 31

Depreciation expense 6

Bad debt expense 1

Interest expense 8

Loss on sale of building 5

Income tax expense 14 200

Net income $36

Additional information from the accounting records:

A. a building that orginally cost 32,000 and which was three-fourths depreicated, was sold for $3000.

B. The common stock of Bryd corporation was purchased for $3,000 as a long term investment.

C. Property was acquired by issuing a 12% seven year $20,000 note payable to the seller.

D. New equipment was purchased for $18,000 cash

E. On Jan 1. 2021 bonds were sold at $25,000 face value

F. on Jan 19, 2021 Dux issued 5% stock dividend (1000 shares) The market price of the $10 par value common stock was $14 per share at the time.

G. cash dividends of $16,000 were paid to shareholders

H. On Nov 12, 500 shares of common stock were repurchased as treasury stock at $7000

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.)