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The comparative balance sheets for 2021 and 2020 and the income statement for 2021 are given below for Arduous Company. Additional information from Arduouss accounting

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

ARDUOUS COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions)
2021 2020
Assets
Cash $ 124 $ 91
Accounts receivable 200 214
Investment revenue receivable 15 14
Inventory 216 210
Prepaid insurance 13 22
Long-term investment 185 135
Land 216 160
Buildings and equipment 428 420
Less: Accumulated depreciation (109 ) (140 )
Patent 44 45
$ 1,332 $ 1,171
Liabilities
Accounts payable $ 60 $ 85
Salaries payable 15 30
Interest payable (bonds) 17 14
Income tax payable 22 28
Deferred tax liability 31 18
Notes payable 28 0
Lease liability 92 0
Bonds payable 225 295
Less: Discount on bonds (32 ) (39 )
Shareholders Equity
Common stock 460 420
Paid-in capitalexcess of par 115 95
Preferred stock 85 0
Retained earnings 233 225
Less: Treasury stock (19 ) 0
$ 1,332 $ 1,171

ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 ($ in millions)
Revenues and gain:
Sales revenue $ 494
Investment revenue 20
Gain on sale of treasury bills 1 $ 515
Expenses and loss:
Cost of goods sold 190
Salaries expense 83
Depreciation expense 14
Amortization expense 1
Insurance expense 17
Interest expense 38
Loss on sale of equipment 25
Income tax expense 46 414
Net income $ 10

Additional information from the accounting records:

Investment revenue includes Arduous Companys $15 million share of the net income of Demur Company, an equity method investee.

Treasury bills were sold during 2021 at a gain of $1 million. Arduous Company classifies its investments in Treasury bills as cash equivalents.

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.

Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $13 million.

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, $98 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.

In February, Arduous issued a stock 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 million.

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 (i.e., 10,000,000 should be entered as 10).)

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