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 ($ in millions)
	2021				2020
Assets
Cash	$	280			$	96
Accounts receivable		205				209
Investment revenue receivable		21				19
Inventory		220				215
Prepaid insurance		19				23
Long-term investment		156				125
Land		211				165
Buildings and equipment		489				415
Less: Accumulated depreciation		(112)				(135)
Patent		59				61
	$	1,548			$	1,193
Liabilities
Accounts payable	$	65			$	95
Salaries payable		21				26
Interest payable (bonds)		23				19
Income tax payable		27				19
Deferred tax liability		26				23
Notes payable		23				0
Lease liability		137				0
Bonds payable		230				290
Less: Discount on bonds		(22)				(25)
Shareholders’ Equity
Common stock		430				410
Paid-in capital—excess of par		95				85
Preferred stock		75				0
Retained earnings		242				227
Less: Treasury stock		(9	)			0
	$	1,211			$	1,074

   

ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 ($ in millions)
Revenues and gain:
Sales revenue	$	410
Investment revenue		11
Gain on sale of Treasury bills		2		$	423
Expenses and loss:
Cost of goods sold		180
Salaries expense		73
Depreciation expense		12
Amortization expense		2
Insurance expense		7
Interest expense		28
Loss on sale of equipment		18
Income tax expense		36			356
Net income				$	67

   
Additional information from the accounting records:

1). Investment revenue includes Arduous Company’s $6 million share of the net income of Demur Company, an equity method investee.

2). Treasury bills were sold during 2021 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents.

3). Equipment originally costing $70 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $17 million.

4). Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $3 million.

5). The preferred stock of Tory Corporation was purchased for $25 million as a long-term investment.

6). Land costing $46 million was acquired by issuing $23 million cash and a 15%, four-year, $23 million note payable to the seller.

7). The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $82 million. Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2021.

8). $60 million of bonds were retired at maturity.

9). In February, Arduous issued dividend (4 million shares). The market price of the $5 par value common stock was $7.50 per share at that time.

10). In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 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 signrn