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 $ 139 $ 130 Accounts receivable 388 380 Less: Allowance for uncollectible accounts (10) (8) Prepaid insurance 5 12 Inventory 364 360 Long-term investment 66 110 Land 250 250 Buildings and equipment 374 350 Less: Accumulated depreciation (146) (120) Trademark 27 30 $ 1,457 $ 1,494 Liabilities Accounts payable $ 50 $ 68 Salaries payable 3 6 Deferred tax liability 21 15 Lease liability 88 0 Bonds payable 140 320 Less: Discount on bonds (29) (35) Shareholders' Equity Common stock 370 350 Paid-in capitalexcess of par 145 125 Preferred stock 50 0 Retained earnings 619 645 $ 1,457 $ 1,494 NATIONAL INTERCABLE COMPANY Income Statement For Year Ended December 31, 2024 ($ in millions) Revenues Sales revenue $ 530 Investment revenue 16 Gain on sale of investments 6 $ 552 Expenses Cost of goods sold 240 Salaries expense 74 Depreciation expense 45 Amortization expense 3 Bad debt expense 8 Insurance expense 38 Interest expense 50 Loss on sale of building 52 510 Income before tax 42 Income tax expense 34 Net income $ 8 Additional information from the accounting records: Investment revenue includes National Intercable Company's $4 million share of the net income of Central Fiber Optics Corporation, an equity method investee. A long-term investment in bonds, originally purchased for $48 million, was sold for $54 million. Pretax accounting income exceeded taxable income, causing the deferred income tax liability to increase by $6 million. A building that originally cost $76 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged sections were sold for $5 million. The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $100 million. Annual lease payments of $12 million are paid on Jan. 1 of each year starting in 2024. $180 million of bonds were retired at maturity. $20 million par value of common stock was sold for $40 million, and $50 million of preferred stock was sold at par. Shareholders were paid cash dividends of $34 million. Required: 2. Prepare the statement of cash flows. Present cash flows from operating activities by the direct method.

Additional information from the accounting records: a. Investment revenue includes National Intercable Company's $4 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 $48 million, was sold for $54 million. c. Pretax accounting income exceeded taxable income, causing the deferred income tax liability to increase by $6million. d. A building that originally cost $76 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged sections were sold for $5 million. e. The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $100 million. Annual lease payments of $12 million are paid on Jan. 1 of each year starting in 2024. f. $180 million of bonds were retired at maturity. g. $20 million par value of common stock was sold for $40 million, and $50 million of preferred stock was sold at par. h. Shareholders were paid cash dividends of $34 million. Required: 2. Prepare the statement of cash flows. Present cash flows from operating activities by the direct methocl. 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. Additional information from the accounting records: a. Investment revenue includes National Intercable Company's $4 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 $48 million, was sold for $54 million. c. Pretax accounting income exceeded taxable income, causing the deferred income tax liability to increase by $6million. d. A building that originally cost $76 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged sections were sold for $5 million. e. The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $100 million. Annual lease payments of $12 million are paid on Jan. 1 of each year starting in 2024. f. $180 million of bonds were retired at maturity. g. $20 million par value of common stock was sold for $40 million, and $50 million of preferred stock was sold at par. h. Shareholders were paid cash dividends of $34 million. Required: 2. Prepare the statement of cash flows. Present cash flows from operating activities by the direct methocl. 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