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 is in millions) 2021 2020 Assets Cash $ 120 $ 89 Accounts receivable 198 210 Investment revenue receivable 14 12 Inventory 212 208 Prepaid insurance 12 20 Long-term investment 180 133 Land 212 158 Buildings and equipment 427 426 Loss: Accumulated depreciation (103) (136) Patent 40 $1,310 $1,150 Liabilities Accounts payable 5 50 5 81 Salaries payable 14 20 Interest payable (bonds) 16 12 Income tax payable 20 26 Deferred tax liability 27 16 Notes payable 27 Lease liability 90 0 Bonds payable 223 291 Les Discount on bonds Shareholders' Equity Common stock 454 418 Paid-in capital-excess of par 111 93 Preferred stock 0 Retained earnings 234 220 LO Treasury stock (17) 0 51,310 $1,150 03 $ 500 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 {$ in millions) Revenues and gain Sales revenue $ 480 Investment revenue 18 Gain on sale of treasury bills 2 Expenses and loss: Cont of goods sold 188 Salaries expense 81 Depreciation expense 10 Amortization expense 2 Insurance expense 15 Interest expense 36 Lons on sale of equipment 28 Income tax expense 44 Net Income 404 $ 96 Additional information from the accounting records: a. Investment revenue includes Arduous Company's $14 million shore of the net income of Demur Company, an equity method Investee. b. Treasury bills were sold during 2021 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents c. Equipment originally costing $86 million that was one half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $15 million d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $11 million. e. The preferred stock of Tory Corporation was purchased for $33 million as a long-term investment f. Land costing $54 million was acquired by Issuing $27 million cash and a 15%, four-year, $27 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. $97 million. Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2021. h. 568 million of bonds were retired at maturity. 1. In February, Arduous issued a stock dividend (7.2 million shares). The market price of the $5 par value common stock was $7.50 per J. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $17 million share at that time. Required: Prepare the statement of cash flows for Arduous Company using the indirect method (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (l.e., 10,000,000 should be entered as 10).) Answer is not complete. ARDUOUS COMPANY Statement of Cash Flows For year ended December 31, 2021 (s in millions) Cash flows from operating activities: Net Income $ 98 Adjustments for noncash effects: Depreciation expense 10 Loos on equipment damage 28 Amortization expense 20 Amortization of discount Changes in operating assets and abilities: Decrease in accounts receivable Increase in inventory Decrease in prepaid insurance Decrease in accounts payable Decrease in salaries payable Increase in interest payable Decrease in income tax payable Increase in deferred tax liability OOOOOOO Decrease in income tax payable Increase in deferred tax liability $ en 136 Net cash flows from operating activities Cash flows from investing activities: Purchase of land Purchase of long-term investment (27) (33) >> (60) Net cash flows from investing activities Cash flows from financing activities: Purchase of treasury stock Payment of dividends Retirement of bonds payable Sale of preferred stock (17) (36) (53) 31 Net cash flows from financing activities Net increase in cash Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities: Acquired land with cash and note 89 $ 120 $ 54