The comparative balance sheets for 2021 and 2020 are given below for Surmise Company. Net income for 2021 was $60 million. SURMISE COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 Assets Cash $ 60 $ 69 Accounts receivable 79 86 Less: Allowance for uncollectible accounts (14 ) (4 ) Prepaid expenses 9 6 Inventory 132 120 Long-term investment 74 45 Land 78 78 Buildings and equipment 320 220 Less: Accumulated depreciation (106 ) (88 ) Patent 14 17 $ 646 $ 549 Liabilities Accounts payable $ 8 $ 21 Accrued liabilities 1 9 Notes payable 28 0 Lease liability 92 0 Bonds payable 54 102 Shareholders Equity Common stock 59 50 Paid-in capitalexcess of par 249 205 Retained earnings 155 162 $ 646 $ 549 Required: Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2021. Use the indirect method to present cash flows from operating activities because you do not have sufficient information to use the direct method. You will need to make reasonable assumptions concerning the reasons for changes in some account balances. A spreadsheet or T-account analysis will be helpful. (Hint: The right to use a building was acquired with a seven-year lease agreement. Annual lease payments of $8 million are paid at January 1 of each year starting in 2021.) (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)

SURMISE COMPANYStatement of Cash FlowsFor year ended December 31, 2021($ in millions)Cash flows from operating activities:Net incomeAdjustments for noncash effects:Changes in operating assets and liabilities:Net cash flows from operating activities$0Cash flows from investing activities:Net cash flows from investing activities0Cash flows from financing activities:Net cash flows from financing activities0Net increase (decrease) in cashCash balance, January 1Cash balance, December 31$0Noncash investing and financing activities: