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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

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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 NIC's accounting records is provided also. 2020 NATIONAL INTERCALE COMPANY Comparative Balance Sheets December 31, 2021 and 2020 $ in millions 2021 Assets Cash $ 61 Accounts receivable 175 Less Allowance for uncollectible accounts (11) Prepaid insurance 7 Inventory 156 Long-term investment 22 Land 160 Buildings and equipment 220 Terni Accumulated depreciation (55) Trademark 19 $ 754 Liabilities Accounts payable $ 28 Salaries payable 3 Deferred tax liability 12 Lease ability 35 Bonds payable 150 Lees: Discount on bonds (18) Shareholders' Equity Common stock 210 Paid-in capital-excess of par 70 Preferred stock 20 Retained earnings 244 $ 754 $ 60 170 (5) 10 150 40 160 200 (50) 20 $ 755 $ 40 4 10 0 250 (20) 200 50 0 221 $ 755 $ 754 $ 755 NATIONAL INTERCABLE COMPANY Income Statement Tor Year Ended December 31, 2021 in millions) Revenues Sales revenue $250 Investment revenue 11 Gain on sale of investments 5 $ 266 Expenses Cost of goods sold 100 Salaries expense 50 Depreciation expense 10 Amortization expense 1 Bad debt expense 4 Insurance expense 10 Interest expense 20 Loss on sale of building 13 208 Income before tax SB Income tax expense 25 Net income $ 33 es 315 * - Additional information from the accounting records: a. Investment revenue includes National Intercable Company's $2 million share of the net income of Central Fiber Optics Corporation, an equity method investee. b. A long-term investment in bonds, originally purchased for $20 milion, was sold for $25 million. c. Pretax accounting income exceeded taxable income, causing the deferred income tax liability to increase by $2 million d. A building that originally cost $20 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged sections were sold for $2 million e. The right to use a building was acquired with a seven-year lease agreement, present value of lease payments, $40 million Annual lease payments of $5 million are paid at Jan. 1 of each year starting in 2021 +$100 million of bonds were retired at maturity. 9.510 million par value of common stock was sold for $30 million, and $20 million of preferred stock was sold at par. h. Shareholders were paid cash dividends of $10 milion. Required: 2. Prepare the statement of cash flows. Present cash flows from operating activities by the direct method. (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.) NATIONAL INTERCABLE COMPANY Statement of Cash Flowe For the year anded December 31, 2021 is in millions) Cash flows from operating activities: Cash inflows: From customers $ 420 From investment revenue Cash outflows: $ 420 Net cash flows from operating activities Cash flows from investing activities: 0 Not cash flows from investing activities Cash flows from financing activities: 0 420 Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities: $ 420

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