The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for National Intercable Company. Additional information from NICs accounting records is provided also.

NATIONAL INTERCABLE COMPANY
Comparative Balance Sheets
December 31, 2024 and 2023
($ in millions)
	2024	2023
Assets
Cash	$ 127	$ 85
Accounts receivable	253	245
Less: Allowance for uncollectible accounts	(11)	(9)
Prepaid insurance	9	15
Inventory	234	225
Long-term investment	42	65
Land	160	160
Buildings and equipment	300	250
Less: Accumulated depreciation	(100)	(75)
Trademark	22	25
	$ 1,036	$ 986
Liabilities
Accounts payable	$ 36	$ 50
Salaries payable	6	9
Deferred tax liability	18	15
Lease liability	75	0
Bonds payable	125	275
Less: Discount on bonds	(24)	(26)
Shareholders' Equity
Common stock	280	250
Paid-in capitalexcess of par	105	75
Preferred stock	70	0
Retained earnings	345	338
	$ 1,036	$ 986

NATIONAL INTERCABLE COMPANY
Income Statement
For Year Ended December 31, 2024
($ in millions)
Revenues
Sales revenue	$ 380
Investment revenue	12
Gain on sale of investments	4	$ 396
Expenses
Cost of goods sold	150
Salaries expense	58
Depreciation expense	35
Amortization expense	3
Bad debt expense	8
Insurance expense	20
Interest expense	45
Loss on sale of building	27	346
Income before tax		50
Income tax expense		25
Net income		$ 25

Additional information from the accounting records:

Investment revenue includes National Intercable Company's $7 million share of the net income of Central Fiber Optics Corporation, an equity method investee.

A long-term investment in bonds, originally purchased for $30 million, was sold for $34 million.

Pretax accounting income exceeded taxable income, causing the deferred income tax liability to increase by $3 million.

A building that originally cost $40 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged sections were sold for $3 million.

The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $90 million. Annual lease payments of $15 million are paid on Jan. 1 of each year starting in 2024.

$150 million of bonds were retired at maturity.

$30 million par value of common stock was sold for $60 million, and $70 million of preferred stock was sold at par.

Shareholders were paid cash dividends of $18 million.

Required:

2. Prepare the statement of cash flows. Present cash flows from operating activities by the direct method.

Note: 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.