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 2e2e ($ in millions) Assets Cash Accounts receivable Investment revenue receivable Inventory Prepaid insurance Long-term investment Land 135 13 185 216 422 (109) 44 160 Less: Accumulated depreciation Patent 420 (140) 45 332 $1,171 Accounts payable Salaries payable Interest payable (bonds) Income tax payable Deferred tax liability Notes payable Lease liability Bonds payable 225 295 1901 11 CO NOON! O U 295 (39) Notes payable Lease liability Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Preferred stock Retained earnings Less: Treasury stock 460 420 95 ok 225 239 (19 1,332 $1,1 ences 28 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 ($ in millions) Revenues and gain: Sales revenue $494 Investment revenue Gain on sale of Treasury bills 1 $515 Expenses and loss: Cost of goods sold Salaries expense Depreciation expense Amortization expense Insurance expense Interest expense Loss on sale of equipment Income tax expense 414 Additional information from the accounting records a. Investment revenue includes Arduous Company's $15 million share of the net income of Demur Company, an 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. I Land costing $56 million was acquired by Issuing $28 million cash and a 10%, four year. $28 million note payable to the seller. 9. 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. I. 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. . In April 1 million shares of common stock were repurchased as treasury stock at a cost of $19.00 million Hequired: Required: Prepare the statement of cash flows of Arduous Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in millions (.e., 10,000,000 should be entered as 10.). Amounts to be deducted should be indicated with a minus sign.) ARDUOUS COMPANY Statement of Cash Flows For year ended December 31, 2021 ($ in millions) 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. 2029 ARDUOUS COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 Assets Cash $ 130 Accounts receivable Investment revenue receivable Inventory Prepaid insurance Long-term investment Land Buildings and equipment 422 Less: Accumulated depreciation (189) Patent 44 $1,332 Liabilities Accounts payable Salaries payable Interest payable (bonds) Income tax payable Deferred tax liability Notes payable Lease liability Bonds payable 225 216 42e (140) 295 190 19 ----- - -- Salaries payable Interest payable (bonds) Income tax payable Deferred tax liability Notes payable Lease liability Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Preferred stock Retained earnings Less: Treasury stock 225 (32) 295 (39) 420 95 460 115 85 239 (19) $1,332 225 $1,171 and gain: $494 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 ($ in millions) Revenues and gain: Sales revenue Investment revenue 20 Gain on sale of Treasury bills 1 $515 Expenses and loss: Cost of goods sold Salaries expense Depreciation expense 14 Amortization expense 190 83 Interest expense Loss on sa the accounting record a. Investment revenue includes Arduous Company's $15 million share of the net income of Demur Company, an 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 Land costing $56 million was acquired by Issuing $28 million cash and a 10%, four year, $28 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, $92 million. Annual lease payments of $6 million are paid at the beginning of each year starting January 1 2021 $70 million of bonds were retired at maturity L in February, Arduous Issued dividend (80 million he market price of the $5 par value common stock was $7.50 per share at that time. In April 1 million shares of common stock were treasury stock at a cost of $19.00 million Required: Prepare the statement of cash flows of Arduous Company for year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in millions (ie., 10,000,000 should be entered as 10.). Amounts to be deducted should be indicated with a minus sign.) The comparative balance sheets for 2021 and 2020 and the income statement for 2021 are given below for Arduous Company Additional information from Arduous's accounting records is provided also. ARDUOUS COMPANY Comparative Balance Sheets December 31, 2021 and 2e2e ($ in millions) Assets Cash Accounts receivable Investment revenue receivable Inventory Prepaid insurance Long-term investment Land 135 13 185 216 422 (109) 44 160 Less: Accumulated depreciation Patent 420 (140) 45 332 $1,171 Accounts payable Salaries payable Interest payable (bonds) Income tax payable Deferred tax liability Notes payable Lease liability Bonds payable 225 295 1901 11 CO NOON! O U 295 (39) Notes payable Lease liability Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Preferred stock Retained earnings Less: Treasury stock 460 420 95 ok 225 239 (19 1,332 $1,1 ences 28 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 ($ in millions) Revenues and gain: Sales revenue $494 Investment revenue Gain on sale of Treasury bills 1 $515 Expenses and loss: Cost of goods sold Salaries expense Depreciation expense Amortization expense Insurance expense Interest expense Loss on sale of equipment Income tax expense 414 Additional information from the accounting records a. Investment revenue includes Arduous Company's $15 million share of the net income of Demur Company, an 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. I Land costing $56 million was acquired by Issuing $28 million cash and a 10%, four year. $28 million note payable to the seller. 9. 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. I. 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. . In April 1 million shares of common stock were repurchased as treasury stock at a cost of $19.00 million Hequired: Required: Prepare the statement of cash flows of Arduous Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in millions (.e., 10,000,000 should be entered as 10.). Amounts to be deducted should be indicated with a minus sign.) ARDUOUS COMPANY Statement of Cash Flows For year ended December 31, 2021 ($ in millions) 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. 2029 ARDUOUS COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 Assets Cash $ 130 Accounts receivable Investment revenue receivable Inventory Prepaid insurance Long-term investment Land Buildings and equipment 422 Less: Accumulated depreciation (189) Patent 44 $1,332 Liabilities Accounts payable Salaries payable Interest payable (bonds) Income tax payable Deferred tax liability Notes payable Lease liability Bonds payable 225 216 42e (140) 295 190 19 ----- - -- Salaries payable Interest payable (bonds) Income tax payable Deferred tax liability Notes payable Lease liability Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Preferred stock Retained earnings Less: Treasury stock 225 (32) 295 (39) 420 95 460 115 85 239 (19) $1,332 225 $1,171 and gain: $494 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 ($ in millions) Revenues and gain: Sales revenue Investment revenue 20 Gain on sale of Treasury bills 1 $515 Expenses and loss: Cost of goods sold Salaries expense Depreciation expense 14 Amortization expense 190 83 Interest expense Loss on sa the accounting record a. Investment revenue includes Arduous Company's $15 million share of the net income of Demur Company, an 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 Land costing $56 million was acquired by Issuing $28 million cash and a 10%, four year, $28 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, $92 million. Annual lease payments of $6 million are paid at the beginning of each year starting January 1 2021 $70 million of bonds were retired at maturity L in February, Arduous Issued dividend (80 million he market price of the $5 par value common stock was $7.50 per share at that time. In April 1 million shares of common stock were treasury stock at a cost of $19.00 million Required: Prepare the statement of cash flows of Arduous Company for 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.)